A convicted fraudster has been imprisoned after illegally claiming more than $100,000 in dodgy GST refunds from the tax office for a non-existent business.

August 30, 2023

A fraudster will spend at least 12 months behind bars after illegally claiming thousands of dollars in goods and services tax refunds.

Justin McCormick was convicted of five counts of dishonestly obtaining a financial advantage by deception from the Commissioner of Taxation.

He claimed $109,278 from the tax office after lodging business activity statements for a non-existent business, the Australian Tax Office said on Wednesday.

McCormick claimed GST refunds for purchases he never made in five statements in February and March last year.

His fraudulent behaviour stopped when the tax office started auditing his statements and referred his case to the Commonwealth Director of Public Prosecutions.

McCormick was sentenced in the Western Australian District Court on Tuesday to two years imprisonment with release on a good behaviour bond after serving one year.

He was also ordered to repay the money he fraudulently obtained.

The tax office has taken action against more than 56,000 alleged GST fraudsters, with $300 million in penalties and interest handed to those found guilty.

Deputy Commissioner and Serious Financial Crime Taskforce chief John Ford said the tax office took GST fraud very seriously and it was escalating its efforts to stamp it out.

“Our message is clear, if you don’t run a legitimate business, you do not need an ABN and you cannot claim GST refunds,” he said.

“We’ve urged offenders to come forward to the ATO or face severe consequences including imprisonment.”

Mr Ford said people who received fraudulent payments will remain in debt for the amount and interest will be applied to the amounts.