ATO Assistant Commissioner Jade Hawkins says tax fraud won’t be tolerated. Photo: ATO.
The Australian Taxation Office and Australian Federal Police have raided the home of a former consultancy firm employee accused of defrauding the government and his clients.
The ATO and AFP executed a search warrant this week at the man’s Sydney residence.
According to the ATO in a statement, the man, not a registered tax professional, allegedly orchestrated a large-scale tax fraud.
He allegedly lodged false tax returns for clients of the consulting firm and redirected the refunds into his personal bank account.
ATO Assistant Commissioner Jade Hawkins said she hoped the action taken against the man served as a warning.
“We will not tolerate the actions of individuals in trusted positions who deliberately deceive people for their own personal gain,” she said.
“The ATO has extensive resources and capabilities specifically targeted to combatting fraud.
“We will continue to ensure those who seek to exploit the tax system are held to account.
“We urge all taxpayers to protect themselves by ensuring they only engage with registered tax professionals when seeking advice or lodging their returns.”
The un-named consulting firm terminated the man’s employment once his alleged behaviour came to light.
He had been an employee at the firm for 11 years.
The ATO said during this week’s search of his eastern suburbs property, material including accounting records and text messages relating to his preparation and submission of tax returns was located.
It is alleged the man used his former company’s credentials to access the ATO’s online services for agents and online services for business.
He allegedly lodged tax returns on behalf of unknowing clients and redirected nearly $1 million in refunds to bank accounts under his name.
One taxpayer contacted during the audit activity believed the bank account was his firm’s trust account.
Another taxpayer was unaware of any ATO refunds being claimed.
Ms Hawkins said the ATO was committed to ensuring taxpayers’ personal information was secure and safe.
She said the ATO app had security features that notified users in real time when key changes were made to their accounts, such as when bank account details were changed and tax returns lodged.
If something doesn’t look right, taxpayers can lock their accounts to prevent further changes being made and prevent refunds from being issued.
Once locked, they should contact the ATO as soon as possible to discuss their security concerns and put additional security measures in place if needed.
The ATO has also issued a reminder for taxpayers to check that a tax professional is registered with the Tax Practitioner Board (TPB).
This is even more important at tax time.
TPB chair Peter de Cure welcomed the action taken by the AFP and ATO.
“Clients and the public should be aware of unregistered preparers who might lodge false and fraudulent tax returns,” he said.
“Tax practitioners, exercising reasonable care and appropriate supervision, need to protect their data, systems and clients from attack.”
Mr de Cure said clients and tax practitioners caught up in scams should review their affairs, if required, with independent advice.
“Tax practitioners who respond with openness and transparency will deliver a better outcome for their clients and their firm.”
Original Article published by Chris Johnson on Region Canberra.
