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It is the latest conviction for the ATO’s Operation Protego, a crackdown on widespread GST rorts promoted on social media.
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Perth man who spent $378k in fake GST refunds jailed
16 September 2024
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A Perth man who received and spent $377,820 in fake GST refunds has been sentenced to two years’ jail.
The ATO said a total of seven original and 24 revised business activity statements (BAS) were lodged on Lee Sheridan’s behalf after he gave his details to another person.
Sheridan is the latest person to be convicted for his participation in GST rorts that proliferated in late 2021 due to their promotion on social media platforms like TikTok.
The Tax Office responded by setting up Operation Protego in April 2022 and has meted out around $300 million in penalties and interest as of August 2024.
Authorities estimated more than 57,000 people participated in the $2 billion scheme between April 2022 to June 2023, including a suspected 150 ATO employees.
While Sheridan did not lodge the BAS or make the GST claims himself, the ATO said he was “wilfully blind” to the fact the person to whom he provided his details would use them fraudulently.
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As a result of the false claims, Sheridan received $377,820 in GST refunds in a bank account in his name.
He spent the funds – including paying the person who lodged the BAS – in breach of subsection 400.4(3) of the Criminal Code, which prohibits deals with the proceeds of crime.
The ATO, which referred the matter to the Office of the Director of Public Prosecutions, said Sheridan received a two-year jail sentence for his actions, but would be released after serving six months.
Operation Protego has seen a total of 104 people arrested and 53 people convicted with a range of sentencing outcomes, including jail terms of up to seven years and six months and with orders made to restrain real property.
The ATO has also finalised 60 investigations and referred 51 briefs of evidence to Commonwealth Director of Public Prosecutions.
In a statement, Deputy Commissioner John Ford said he wanted to remind the community that GST fraud was not a victimless crime.
“If you choose to engage in GST fraud, you are actively taking away funds that could be used on services that benefit the community such as healthcare, infrastructure and education,” he said.
“We have already warned Australians against becoming involved in GST fraud. This outcome demonstrates that those who engage in GST fraud will be prosecuted with the full force of the law.”
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