GST fraudster sentenced over multimillion-dollar scheme

A Melburnian who tried to defraud $5 million through GST refunds has been sentenced to five years in jail.

by | 23 Nov, 2020

Michael Ray, a 38-year-old fraud syndicate member, was sentenced to five years imprisonment on Monday, with a non-parole of three years, after the Melbourne County Court found him guilty of conspiring to defraud the Commonwealth of $5 million.

The South Melbourne man was one of three people identified and charged following a join operation by the Australian Federal Police (AFP) and Australian Taxation Office (ATO) in May 2017.

Ray was charged after police identified he had attempted to obtain a share in over $5 million and did dishonestly obtain a share in more than $2.5 million from the GST fraud scheme, which had operated between 12 November 2010 and 14 December 2012.

He pleaded guilty to all charges.

According to the ATO, the scheme was concocted to illegally obtain personal identifying information, which was then used to create false entities and register them for GST.  

Business activity statements (BAS) were then lodged to claim false GST refunds, which were directed to bank accounts that had been created using the stolen identities.

In total, the police seized over $1.5 million in cash as it raided Melbourne properties and safety deposit boxes.

ATO assistant commissioner Ian Read said this is a successful result under the partnership of the ATO and AFP, who work together to investigate serious criminal activities.

“Tax crime affects the whole community by reducing the revenue that is available to fund essential community services,” Mr Read said.

“We know the majority of people are honest, but there are a small percentage of people who deliberately abuse the tax and super system for their own financial benefit. Today’s sentencing shows that these people will be held to account.

The recovered $1.5 million will be returned to Commonwealth coffers, while those who had their identities stolen have been extended support.

“$1.5 million has been recovered and those who had their identity compromised were provided support to help get their affairs back on track.

“This is an excellent result.”

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