The ATO has warned tax agents that, with an increase in the lodgment of income tax returns between July and September, they may be approached to unknowingly lodge fraudulent income tax returns on behalf of clients using false payment summaries. The ATO says these payment summaries are often realistic copies of a genuine payment summary or other employment documentation, with legitimate details such as TFN, payer name and matching ABN.
From information the ATO says it received for the 2009-10 income year, it says some things that might indicate a client is providing fraudulent information are that:
- they are a new client lodging with you between July and September;
- they provide the agent with handwritten documents;
- the tax withheld amount listed on the payment summary is excessive in comparison to the income reported;
- the return has simple deduction claims and, in some cases, may include spouse offsets and/or education tax rebates;
- deductions may not seem to align with the occupation code or are higher than would normally be expected for the occupation listed;
- there are some numerical similarities or rounded figures where a number of new clients are claiming the same employer details.
This article appeared in Thomson Reuters Weekly Tax Bulletin (5 August 2011). Australia’s most comprehensive and informative tax news service, it covers, in clear terms, all tax and related developments from cases, new legislation, tax rulings and major announcements to detailed practitioner articles. To find out more, click here
