Media Release: ATO investigates $65m GST fraud in gold bullion trade Release Date: Wednesday, October 30 2013, 12:39 PM This media release has been published on behalf of the Australian Taxation Office (ATO). The ATO is investigating companies in the gold bullion industry suspected of GST fraud totalling more than $65 million. The ATO, Australian Federal Police and Australian Crime Commission yesterday executed search warrants on premises associated with the companies operating in the gold bullion and precious metals industries. The investigation forms part of the work undertaken by the joint-agency Criminal Asset Confiscation Taskforce (CACT). It is alleged the companies fraudulently claimed GST credits and failed to report GST correctly. They formed syndicates to conceal the true nature of their activities and to avoid detection. As a result of the investigation the ATO has issued garnishee notices and GST amended assessments with liabilities of more than $130 million. ATO Deputy Commissioner Greg Williams said the ATO takes GST fraud seriously. "The majority of businesses do the right thing, however the ATO will pursue those that choose to engage in illegal behaviour." "Further audits of industry participants will be undertaken in the near future and we will continue to work closely with other government and law enforcement agencies to pursue those suspected of abusing the system," Mr Williams said. AFP Manager Criminal Assets Matt Rippon said the combined resources of all agencies involved in the investigation provided an opportunity for the Criminal Assets Confiscation Taskforce (CACT) to examine the full range of any criminal activity. "The sheer amount of money involved in this matter and the activity undertaken to disguise its movement means we are treating this as an organised criminal activity," said Commander Rippon. "I warn any people involved in this matter that the Taskforce plans to follow the money trail and actively target any proceeds of crime that have been acquired as a result of associated criminal activity." Australian Crime Commission Acting Executive Director Operations, Richard Grant said that financial crimes continue to increase in diversity, scale and in harm to the Australian community. "Joint investigations targeting criminal wealth have proven to be an effective approach in the fight against organised crime, and in safeguarding our economy."
Isn't bullion GST exempt? At least I've never paid GST on my bullion. This sounds more like a witch hunt to me?
The media release isn't specific, but I suspect it involves more scrap buyers than investment grade bullion dealers.
It does say "ATO investigates $65m GST fraud in gold bullion trade". Given that the fraud is supposedly $65 million, and it states BULLION. It'd be a stretch assuming it's just scrap dealers.
It's a media release. Don't expect the terminology to be accurate. Their own definition of "bullion" means that GST isn't applicable anyway, so I'm guessing they're looking into scrap buyers and refiners. For what it's worth, the tax treatment of non-pure gold through all the stages from acquisition and disposal to a refiner is an accounting nightmare.
selling a .9999 maple that is super-glued to copper rounds will be gst chargeable, on those coppers of course :lol:
Either way (scrap or bullion dealers) it's a victimless "crime". To show how absurd it is, this would have been a non-issue 13 years ago before GST was introduced (on July 1st 2000). But now it's a criminal investigation involving the "Criminal Asset Confiscation Taskforce".
Seems to be a $65m fraud with a $130M penalty. There should be a article in the Melbourne Age newspaper tomorrow, as I found out about this from a Age reporter that called me trying to find out who it was about.
