Thousands try to make bogus expense claims, Inland Revenue says
An investigation has identified and stopped nearly 3000 fraudulent amended returns - including 547 received on one night.
The Inland Revenue is warning thousands of individuals who are making fraudulent expense claims on their tax returns that they could face significant penalties. Staff noticed unusual tax returns and identified a coordinated scheme where people claimed expenses they were not entitled to. Inland Revenue spokesperson Sarah Bourke stated that nearly 3,000 fraudulent amended returns, including 547 received on one night, were stopped.
Social media posts were reportedly being used to offer help with these expense claims. $151,787 in refunds were paid out before new measures were put in place to stop the fraud, and $4.015 million in bogus claims was prevented. Inland Revenue is working to recover the money, with one individual already on an installment arrangement to pay it back.
The scheme appears to spread through community or workplace networks, initially concentrated in the transport industry but now extending to other areas across the country. Several customers also contacted Inland Revenue in Auckland and Wellington, wanting to reset their myIR passwords to amend their returns, mentioning a social media post about how to get extra money.
Inland Revenue urges anyone considering joining the scheme to think again, as those who claim non-legitimate expenses could face sanctions, including a 150% evasion shortfall penalty, prosecution, and being required to pay the money back.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
