Tiktok GST Fraud Hit on Tax Office Blows out to $4.6b

spychiatrist on 15/08/2023 - 10:58
Last edited 16/08/2023 - 18:11 by 2 other users

If Google News is your source of daily news, you'll be surprised this biggest scam is not mentioned. Cover up?

Anyhoo, I try my best to get my tax correct to the last cent while the ATO just throws away money to scams.

And who pays for this scammed money? The taxpayers for sure!

Copy paste from AFR

The Tax Office has admitted paying out more than $1.6 billion in fake GST claims as part of a $4.6 billion fraud based on a simple scheme promoted on social media platform TikTok – a total that is twice previous reports and the biggest tax fraud in Australian history.
The fraud was uncovered by Westpac and other banks, some of which passed on a series of alerts to the Tax Office from 2020. But after being frustrated by the apparent lack of action by the Tax Office, some bank staff shared their concerns informally with the Reserve Bank, which then alerted Treasury and the Tax Office in February last year.

MOD: Rest of the article removed. Please do not copy and paste entire article from news source.

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Comments

  • tsunamisurfer on 15/08/2023 - 11:04
    +2

    Is claiming fictitious expenses new?

  • Brick Tamland on 15/08/2023 - 11:10
    +4

    There was no cover-up, its just never been picked up by the media until now.

  • MS Paint on 15/08/2023 - 11:12
    +4

    I try my best to get my tax correct to the last cent

    Why? PAYG tax is to the nearest dollar.

    • comradePUP on 16/08/2023 - 09:24
      +1

      there is more to tax than just your income statement

  • Drakesy on 15/08/2023 - 11:17
    +15

    ATO asleep at the wheel.

    Will go after the blue and white collar workers but when someone finds a loophole in the system they'll happily hand out the money but have no accountability when it disappears.

  • Aleigh123 on 15/08/2023 - 11:17
    +2

    I actually did see it on Google News.

  • Protractor on 15/08/2023 - 11:22
    +1

    ABC isn't covering it up. Old news.
    https://www.abc.net.au/news/2023-07-26/ato-reveals-cost-of-m…
    (Read what Teague has to say)
    I also recall KPMG being mentioned recently when the light shone on the big 4 contractors to fed govt

    Anyway, I find it interesting that I have had no contact with MyGov for years and one day I get a bland email telling me to login, there were 2 messages there. Before doing it, I checked email headers. All looked good, and there were no links on the eml, so nothing to click on.(Which I never do)
    Then I found a legit point of contact to ask MyGov if the email was legit. I waited almost a fortnight & got no response. So I decided to 'risk' a login.
    All that awaited me were the 2 unread emails. One was pointless, the other about organ donation (PDF)
    Why they weren't simply sent I don't know. 2 more weeks and in that time I am now getting spam emails from obvious dodgy scammers using mygov tag.I was never getting this stuff before the recent login. So I suspect the actual MyGov site is somehow compromised. So be careful.

    This massive loss looks more like an inside job. Just the way it was allowed to run for so long, and apparently no outward alerts.
    Clearly ASIO, AFP and our security people are too busy to do their real jobs.

    • dtc on 15/08/2023 - 11:59
      +1

      MyGov isnt compromised, its just that scammers have moved onto using supposed MyGov links (like they are also using AusPost links, previously it was Amazon or the ATO).

      MyGov doesnt send links, you log in separately so I dont know why you think it would be a risk to log into your own account and not through a link.

      • Protractor on 15/08/2023 - 12:28
        -1

        My point is the timing & coincidence. Nothing at all from MyGov.Then they want me to log in out of the blue for 2 pissant excuses. After that the fake mygov emails begin to arrive. Same format in the main part of email, but links (obviously dodgy).ergo, in the midst of all the fake crap going on as per My gov/ATO, not once did Mygov send out an alert, and yet, an eml to recommend logging into access to low priority things , is daft.
        Whichever contractor maintains security across fed govt websites is clearly not fit purpose if we stack up the hacks & losses. This is highly sensitive govt dada FGS.
        Sure, logging into my acct 'might' be safe. But don't you think it's 'remotely' possible there's ways for the crooks to blur the lines or track traffic to and from emails and logins?

        The other major risk factor is the stupidity of offshore processing, with all sorts on unknowns accessing our data. From emails, to banking etc.
        When you combine all the holes involved, ppl just walk through.

        TLDR:
        Seems fishy that I got nothing from MyGov for years, and suddenly after a pointless reason to contact me and after logging in, the fake emails begin to roll. Possible coincidence? But I have no faith in whoever runs security on govt websites. At all

    • bamzero on 16/08/2023 - 12:16

      Seems to be two different things. That talks about security flaws in MyGov. This is just straight up GST fraud.

      • Protractor on 16/08/2023 - 12:26

        Given the times that so called safe govt sites have been hacked, I'm in the camp that thinks if they are all managed by the same parasites, they are all vulnerable. And when you add email skimming and other sites hacked into for personal data, and APost vulnerability to passports,cards and bills going through who knows who's custody, we are basically gifting enough info for the scammers to operate as per this ATO far cup.
        I wonder how many of these ATO scammers just used the Optus data gift?

        • bamzero on 16/08/2023 - 12:35

          I wonder how many of these ATO scammers just used the Optus data gift?

          I'm sure it helped. In this article she was part of the Optus breach, but they had her TFN as well which supposedly wasn't part of the breached data.

          • Protractor on 16/08/2023 - 12:52

            @bamzero: "supposedly" Like others, Optus fessed up long after the event. Take everything they say as half truths. There's no meaningful punishment to be faced if they lie. Heads don't roll. (not the ones who should)
            In reality if the TFN were stored with or linked to Optus through a third party 'conduit', super easy pickings,thereafter.

  • Jimothy Wongingtons on 15/08/2023 - 11:22
    +2

    bloody tiktok

  • Gdsamp on 15/08/2023 - 11:25
    +1

    don't see enough financial advice disclaimers on tiktoks/creator accounts

  • CyberMurning on 15/08/2023 - 11:34
    +1

    so, how?

    setup tiktok ac
    setup ABN
    claim gst refund

    thats it? 3 steps?

    • JimmyF on 15/08/2023 - 11:39
      +4

      Well step 3 was really "claim fake gst refund" But yeah pretty much as you said. You didn't need the tiktok part, basically create an ABN, claim fake GST credits that are paid to you by the ATO.

      • CyberMurning on 15/08/2023 - 11:40

        omg… and some people working hard and pay taxes while some…. ah yeah i thought the scam involving tiktok as a business and claiming loss but it was shared on tiktok

    • Sinnerator on 16/08/2023 - 08:42

      I DID IT
      so long suckers, just bought a NEW yacht and am sailing the Caibbean

      • Protractor on 16/08/2023 - 12:27

        They'll never find you 'there'.
        ; )

  • burningrage on 15/08/2023 - 11:51
    +1

    This is old news for those who are well-versed in financial literacy

    They have just made it more accessible, easier to do, and publicized thanks to Social Media.

    It's still fraud but people would do anything for easy (and fraudulent) money instead of doing legit work.

  • CyberMurning on 15/08/2023 - 11:52

    can i see example of the tiktok links? :D

  • trapper on 15/08/2023 - 12:05
    +1

    How many people have actually been prosecuted for this fraud?

    • CyberMurning on 15/08/2023 - 12:17
      +3

      maybe 0.001% of them thats why this will keep going

    • EBG on 15/08/2023 - 21:16
      +1

      Not nearly enough

      https://www.afp.gov.au/news-media/media-releases/ato-and-afp…

      • Protractor on 15/08/2023 - 21:52
        +1

        Most of the milking will be done by corporate gangsters with a foot in the door somehow.
        The one place Straya govts never check is the obvious under the nose stuff, because 'crime free' = no jobs and contracts, for said leeches.
        How much REAL vetting is done on the staff and contractors accessing govt data,public data and govt digital infrastructure. All done by the same silver foxes prowling the chook yard

        LOL> DIY dobbing in. (great model) >
        "If you are involved in the scheme, it’s better to come forward than wait for the ATO to come to you. Call on 1300 130 017 or visit ato.gov.au/GSTrefundfraud"

        • kraigg on 16/08/2023 - 08:17

          Exactly right. If an entity has been willfully ripping off the ATO and taxpayers, are they really going to call up and say: "Hello ATO? Yeah mate, I saw the news article and I wanted to see if I could turn myself in? Yeah? Nah, Tuesday doesn't work for me, busy, what about next week?"

          • Crow K on 16/08/2023 - 13:29
            +1

            @kraigg: It's a clever announcement.

            • You get the nervous "oh shiiiiiiiiit i knew i shouldn't have done that oh nooooooo" % of the populace who see the potential penalties and have regret/fear (Someone stupid enough to engage in GST fraud based off a tiktok video is likely not financially literate).

            • For those who don't turn themselves in and get caught, if they're "oh i'm sorry I really wasn't sure, silly mistake, clemency please" the judge can say "well, you had the chance to do the right thing and they explicitly made it simple for you to do so, so tough luck".

            • trapper on 16/08/2023 - 15:40
              +2

              @Crow K: People committing fraud for tens of thousands of dollars should be facing jail time not just penalties.

              • Crow K on 16/08/2023 - 15:47
                +1

                @trapper: I agree. I'm using "penalties" as a word for punishment (including prison). I wasn't advocating for purely financial measurements.

            • Protractor on 16/08/2023 - 17:44
              -1

              @Crow K: Your theory might apply if a deterrent penalty has been demonstrated. Ever. (I mean in these ATO cases) I'm yet to see any evidence of a scary outcome for anyone.
              Wishful thinking of the ATO to land the 0.01% of guilty consciences is a sh*t plan.
              Meaningful action/penalties/sentencing/outcomes are what work.

              In a proudly litigious world, lawyers just paly the PTSD or bad childhood card and voila. Easy street ahead.

              The judiciary in Straya are WAP.
              Judges allow bushfire arsonists off every other day

              • Crow K on 16/08/2023 - 23:25

                @Protractor:

                Your theory might apply if a deterrent penalty has been demonstrated. Ever. (I mean in these ATO cases) I'm yet to see any evidence of a scary outcome for anyone.

                1. Not sure what you mean by "demonstrate a deterrent penalty". People taking out ads in the paper to announce they have chosen not to break laws due to the power of the deterrent? Have a bit of a think on that one and get back to me.

                2. "Yet to see evidence".. do you find yourself perusing ATO case law and rulings a lot? How much weight should we place on something you haven't seen?

                • Protractor on 17/08/2023 - 11:17

                  @Crow K:

                  1. If the penalty for these breaches is piss poor, or magistrates deliver a wrist slap, there is FA deterrent.

                  Have a bit of a think on that one and get back to me.

                  1. Pretty sure if there multiple cases of crooks getting caught,pinged and locked up for major ATO crimes we'd see it splashed on the media or even in that ABC story.

                  "How much weight should we place on something you haven't seen? "
                  As much as want.

                  Tax crime offenders aren't being deterred. Tax payers are being fleeced, lawyers are getting rich,ATO is big on little crime and small on big crime. Judges think maximum sentences should be seen but not heard

                  • Crow K on 17/08/2023 - 11:23

                    @Protractor:

                    If the penalty for these breaches is piss poor, or magistrates deliver a wrist slap, there is FA deterrent.

                    That "if" is doing some mighty heavy lifting on the unproven assumptions front, son.

                    Might be a good time to back away from your bad talking point (the "show me a demonstrated deterrent" brainfart, the same energy as the "I can't believe we spent $X billion working on solutions to the Y2K problem and then nothing went wrong anyway".)

                    Tax crime offenders aren't being deterred. Tax payers are being fleeced, lawyers are getting rich,ATO is big on little crime and small on big crime. Judges think maximum sentences should be seen but not heard

                    Thanks for the status update, Chicken Little. Lots of talkback radio "lemme tell yous", no facts or proof, huh? No wonder you're yet to see any evidence to the contrary, you're not even looking.

                    • Protractor on 17/08/2023 - 13:50

                      @Crow K: I think you've outgrown that lunchbox.
                      The story describes billions $$$ in loss. How's the corresponding court list going for that?

                      • Crow K on 17/08/2023 - 13:58

                        @Protractor: Speaking of incurious people who don't like to consult the ATO for information on what the ATO is doing, I note the ATO recently issued a correction on that story confirming the amount of loss was vastly overstated, and outlining their progress.

                        https://www.ato.gov.au/Media-centre/Corrections-and-clarific…

                        Anyway, I'll let you get back to your free-association and skepticism.

    • gyrex on 16/08/2023 - 08:44

      "Two individuals have been sentenced to jail time for their crimes so far, following their arrest in 2022."

      Apart from the fact that not nearly enough prosecutions have been forthcoming, you know by their omission of sentences that they've been given a slap on the wrist ie. suspended sentence or 'community corrections order' ie. no jail time. Australia's injustice system is a bloody joke and there's no repercussions for committing crime anymore. We need drastic reforms yesterday to our injustice system and the paltry sentences handed down.

      • Protractor on 16/08/2023 - 10:13

        Before that we need accountability from Ministers down. This is where the NACC should come in. Who was the Minister , dept leader etc, responsible for the periods of most of these ATO frauds?
        And before the above the Australian ppl should be asked about (and have our full support) bigger things like AUKUS, the American takeover, and the nuclear-isation of our nation ( weapons,dumps,parked up rusting subs)

        • gyrex on 16/08/2023 - 11:06

          I agree with your points but there's no reason why we can't demand political accountability in tandem with a mass reform to our currently broken and flaccid injustice system, they're not mutually exclusive and able to be implemented concurrently.

          • Protractor on 16/08/2023 - 11:09
            +1

            @gyrex: Agree. And another broad sweeping Royal Commission into policing state and federal.
            Corruption always creeps in over time. And it's been a long time since a proper light was shone inwards. They should start with the AFP. The NACC could even do that scrutinising.

  • Drakesy on 15/08/2023 - 12:25
    +4

    Just wait until they start crying poor when the debts get called in.

    Robodebt - i have sympathy as the process was flawed from the start,

    This - they deserve everything that gets handed to them.
    "Now I'm not a financial advisor, but here's a sure fire way to get the government to pay YOU tax…"

  • Drpepper666 on 15/08/2023 - 12:25
    +2

    One weird trick to get free money! Taxpayers hate this!

  • Protractor on 15/08/2023 - 12:30
    -1

    Russia

  • Protractor on 15/08/2023 - 21:48
    -1

    Chy-a-nah

  • The Value on 15/08/2023 - 22:27
    +4

    I'm kinda blown away by the $1.6 billion dollar figure.

    This isn't just some idiots doing whatever they see on TikTok for a few grand. This is HUGE.

  • reactor-au on 16/08/2023 - 08:54
    +1

    It's not a new trick, is been happening since the beginning of time all over the world.
    Tiktok only made it more popular.

  • Daniel Plainview on 16/08/2023 - 09:07
    +2

    Wow between this and the NDIS defrauding…and I wonder who was actually held to account for this loss of public dollars?

    Don't pay your taxes, end up fined or in jail - allow public funds to be stolen on your watch, get a terse speaking to by your superior but otherwise no ramifications.

    You go losing billions in the private sector you're being fired, if not whacked. DIsgraceful.

    • Protractor on 16/08/2023 - 10:02
      +1

      "You go losing billions in the private sector you're being fired, if not whacked."
      Open the front door for mega hacking in the private sector, no punishment. (Optus) The bint kept her job. And after appointing the security dude herself

      • gyrex on 16/08/2023 - 11:04

        We all know why she kept her job. If it the CEO had testicles between his legs, he would have been sacked faster than a greased pig.

        • Protractor on 16/08/2023 - 11:11

          She shouldn't have been appointed as CEO initially. But you may be right.

          *Hi, to Mark Latham. How you coping darl?

    • Protractor on 16/08/2023 - 14:30

      Happens every day. Professional parasites who hunt down cushy govt jobs and schemes, and then do sh*t like this.

      This stuff is rife>
      https://www.abc.net.au/news/2023-08-16/canberra-woman-ilze-s…

      Another soft judge.
      Surprised the PTSD card wasn't played

      EDIT Anothery>

      https://www.abc.net.au/news/2023-08-16/brothers-spared-jail-…

      Moral of the story is steal from the govt. There's no victims involved (cough cough). Soft judges abound

      • CyberMurning on 22/08/2023 - 17:10

        yeah.. too soft. why gov is protecting the wrong group of people? there are so many wealthly good people who will happy to live here, throw the bad ones away

  • duluxe2000 on 18/08/2023 - 14:01

    I'm absolutely angry at this. Not only my tax dollar goes to the fraudsters, but it might imply the future changes as well: the ATO might mandate everyone has to use accountants to lodge tax returns.

    • reactor-au on 19/08/2023 - 10:35

      Accountants aren't the tax police

  • slothhead on 22/08/2023 - 17:04

    The lack of accountability by the ATO and the relevant minister and senior bureaucrats boils my blood. There should be prison sentences for all of those involved in not taking reasonable steps to safeguard public money. This is disgusting. There is no accountability in the public service. None. We need new leadership - someone who is prepared to drain the swamp, be honest and transparent, and take accountability for failures.

    • CyberMurning on 22/08/2023 - 17:12

      correct. gov and ato should deliver a warning with sufficient time frame, then act on it. make it clear, yes some will get away but if you get caught thats it basically game over for you, you will be marked forever in this country. no excuse of i didnt know this that

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