ATO investigates 150 Tax Office employees after suspected involvement in a $2 billion social media scam
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The Australian Taxation Office (ATO) is the government body responsible for managing and shaping tax, excise, and superannuation systems that fund services for Australians.
However, a recent Auditor General's report has revealed a shocking scandal within the ATO itself.
Up to 150 ATO staff members have been investigated for suspected involvement in a social media scam allegedly defrauding the Australian public of a staggering $2 billion.
The ATO employees were investigated as part of Operation Protego, a targeted operation set up to identify and apprehend individuals who had been benefiting from fraudulent goods and services tax (GST) refunds.
The operation was initiated in response to a significant increase in tip-offs regarding refund fraud, as well as a surge in the number of Australian business number and GST registrations.
The scam was further propagated through social media videos that offered advice on how individuals could claim more money through GST refunds.
The Auditor General's report revealed that those suspected of claiming false GST refunds had attempted to claim amounts ranging from $38,900 to a whopping $2.4 million.
It stated: 'The ATO has identified 57 per cent of individuals involved in the fraud were in receipt of a government benefit.'
‘Approximately 30 per cent of individuals attempted to obtain a fraudulent refund a second time, and 10 per cent attempted a third time.’
Since the inception of Operation Protego, the ATO has managed to reclaim more than $2 billion, while an additional $2.7 billion was intercepted just before payment was made.
As of August 2023, the operation has resulted in more than 100 arrests and 16 convictions.
It is estimated that over 57,000 people attempted to claim the false refund.
Among these were 150 ATO staff members, who were subsequently investigated by the ATO's internal fraud team.
The report stated, 'A range of treatment strategies have been applied by the ATO, including termination of employment and criminal investigations.'
The ATO has issued over $120 million in financial penalties to individuals found to have participated in the fraudulent scheme.
Have you ever been targeted by a tax scam? Let us know in the comments below.
However, a recent Auditor General's report has revealed a shocking scandal within the ATO itself.
Up to 150 ATO staff members have been investigated for suspected involvement in a social media scam allegedly defrauding the Australian public of a staggering $2 billion.
The ATO employees were investigated as part of Operation Protego, a targeted operation set up to identify and apprehend individuals who had been benefiting from fraudulent goods and services tax (GST) refunds.
The operation was initiated in response to a significant increase in tip-offs regarding refund fraud, as well as a surge in the number of Australian business number and GST registrations.
The ATO Auditor General reported on the GST scandal. Credit: Unsplash
The scam was further propagated through social media videos that offered advice on how individuals could claim more money through GST refunds.
The Auditor General's report revealed that those suspected of claiming false GST refunds had attempted to claim amounts ranging from $38,900 to a whopping $2.4 million.
It stated: 'The ATO has identified 57 per cent of individuals involved in the fraud were in receipt of a government benefit.'
‘Approximately 30 per cent of individuals attempted to obtain a fraudulent refund a second time, and 10 per cent attempted a third time.’
Since the inception of Operation Protego, the ATO has managed to reclaim more than $2 billion, while an additional $2.7 billion was intercepted just before payment was made.
As of August 2023, the operation has resulted in more than 100 arrests and 16 convictions.
It is estimated that over 57,000 people attempted to claim the false refund.
Among these were 150 ATO staff members, who were subsequently investigated by the ATO's internal fraud team.
The report stated, 'A range of treatment strategies have been applied by the ATO, including termination of employment and criminal investigations.'
The ATO has issued over $120 million in financial penalties to individuals found to have participated in the fraudulent scheme.
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