A Melbourne man, Josh Merrett, has been sentenced to two years and eleven months in prison for committing GST fraud amounting to over $390,000. The Australian Taxation Office (ATO) reported that Merrett submitted false claims for GST refunds using an Australian Business Number (ABN) associated with a non-existent staircase manufacturing and antique furniture repair business.
Investigators from the ATO, alongside the Australian Federal Police, searched Merrett’s residence and found no indication of legitimate commercial activities linked to his claims. He was found to have filed 31 Business Activity Statements (BAS) between June 2021 and June 2022, leading to the fraudulent refund payments within a short three-month period. This suspicious activity prompted the ATO to conduct an audit and freeze his account.
In addition to the $390,000 already obtained through fraudulent means, Merrett had attempted to receive an additional $330,000 through the same deceptive practices. He faced multiple charges, including obtaining a financial advantage by deception and non-compliance with a police order to provide his phone passcode after officers seized the device during their investigation.
ATO Acting Deputy Commissioner Kath Anderson stressed the severity of the fraud, stating, “There are no ifs, ands or buts here – if you don’t run a business, you don’t need an ABN and you cannot claim GST refunds. This is fraud.” She also affirmed the ATO’s commitment to tackling tax-related fraud vigorously.
Upon his release, which occurred after serving one year and eight months, Merrett was placed under a bond for two years with conditions of good behaviour. He is still liable for $392,917 in reparations, which the ATO intends to recover in the future.