Four people, including two former tax office employees and contractors, have been charged and sentenced for participating in a tax fraud scheme that was publicised on TikTok.

The Australian Taxation Office (ATO) revealed last week that four more individuals have been charged for GST fraud stemming from a scam that gained prominence on social media platforms.

Two of the individuals who have been recently sentenced over the tax fraud scheme were current employees or contractors at the tax office when the crimes took place.

Fake businesses and fake GST claims

The scam was first detected in 2020 but exploded in popularity the following year after a number of influencers on social media platforms made videos promoting the fraud.

It involved individuals setting up ABNs for non-existent businesses and then lodging fake business activity statements (BAS) so they could be paid GST refunds.

More than 57,000 people allegedly committed this type of fraud, with an estimated $2 billion scammed from the Commonwealth.

The ATO has since launched Operation Protego to combat the scam and refer people involved for prosecution.

This has seen about $300 million recovered in penalties and interest, and 122 people convicted.

The ATO has also finalised 64 investigations and referred more than 50 briefs of evidence to the Commonwealth Director of Public Prosecutions.

It was initially believed that up to 150 ATO officials were being investigated for committing tax fraud, but many of these people had left the tax office before they allegedly took part.

Four people have recently been sentenced for taking part in the tax fraud, with two to spend time behind bars.

Former tax office workers sentenced

The two former ATO workers have received prison sentences but will not serve any time, instead being released on good behaviour bonds.

ATO has launched Operation Protego to combat the scam and refer people involved for prosecution. Photo: Supplied

Former ATO employee Menuwarage Ranasinghe was recently sentenced at Adelaide Magistrates Court to four months’ imprisonment for three counts of the offence of obtaining a financial advantage by deception.

She has been released immediately on a $500 security and 18-month good behaviour order.

It was found that Ranasinghe lodged three BAS which misrepresented the credible expenses incurred by her business, leading her to obtain more than $16,000 in fraudulent GST refunds.

Former ATO contractor Baby Dee Zearwie was sentenced at Melbourne County Court, receiving eight months’ imprisonment for one count of obtaining a financial advantage by deception by joint commission, and one count of obtaining financial advantage by deception.

The court heard that Zearwie obtained nearly $90,000 in fake GST refunds, and ordered her to make reparations of nearly $24,000.

Two other individuals who did not work for the tax office were also recently sentenced for taking part in the GST fraud, and both will be spending time in prison.

Kim Orense was sentenced in Penrith District Court to 18 months’ imprisonment and will be released after 10 months subject to good behaviour, after being charged with dealing in money or property that was the proceeds of indictable crime.

According to the ATO, from October 2021 to April 2022, 14 fake BAS were lodged in Orense’s name, with nearly $215,000 received in GST refunds.

The claims related to a supposed house repair business run by the man.

But when his house was searched in mid-2022, no business records, invoices, tools or equipment were found.

The court heard Orense then transferred the money into other bank accounts and to associates, including his former partner, Abigail Ussher, who has also been sentenced.

Ussher was sentenced to 12 months’ imprisonment and will be released after five months subject to good behaviour.

It was found that she lodged three original and four revised BAS in 2022 and received nearly $120,000 in refunds through an ABN for a business that she said provided crime scene cleaning services.

But an investigation found that Ussher was not carrying out that business as was claimed.

All of these individuals were prosecuted by the Office of the Director of Public Prosecutions after being referred by the ATO, under Operation Protego.