Up to 150 Australian Taxation Office (ATO) staff have been investigated over suspicions they participated in a $2bn social media scam involving false GST refunds, according to an auditor general's report.
The ATO revealed it had sacked some employees and launched criminal investigations into others linked to the widespread fraud, which was targeted under Operation Protego. The operation was established after a surge in refund fraud tipoffs and an increase in Australian business number and GST registrations, with social media videos offering advice on how to claim more money.
The report said those suspected of claiming false GST refunds had attempted amounts between $38,900 and $2.4m. Since the operation began, the ATO has reclaimed over $2bn, while a further $2.7bn was stopped just before payment. As of August 2023, more than 100 arrests had been made, with 16 convictions.
The report noted that 150 ATO staff were among more than 57,000 people who tried to claim false refunds, with the internal fraud team investigating them. It also found that 57% of individuals involved were receiving government benefits, 30% attempted a second fraudulent refund, and 10% tried a third time.
The ATO applied various treatment strategies, including termination of employment and criminal investigations, and issued over $120m in financial penalties to those found to have participated in the scheme.
