- A recent media release states that the ATO is leading a financial taskforce with the AFP to combat a false invoicing scheme involving 1200 businesses
- False invoicing involves businesses claiming tax deductions and GST credits for payments made to promoters who return cash less a fee
- The ATO defines false invoicing as a scheme where one entity issues an invoice to another without providing goods or services
- The ATO will deny tax deductions and GST credits for businesses using false invoicing arrangements and may impose penalties and criminal prosecutions
- The best way to avoid penalties and criminal prosecution is to make an urgent voluntary disclosure
- The ATO is identifying participants and will eventually catch up with all businesses involved in false invoicing
- Seeking help from professionals with experience in this area can help resolve any issues with the ATO
Source: waterhousetaxlawyers.com.au
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
