ATO investigates fraud that increases cash flow
Perhaps this is the reason why the initial cost of the treasury instrument in March 2020 ($ 31.9 billion) was 12% lower than the final bill of $ 35.8 billion from the federal budget of This year.
For its part, the ATO said it was “aware” that companies had been restructured to meet eligibility for the cash grant (valued at $ 20,000 to $ 100,000), including provisions to split up a business with revenues exceeding $ 50 million, so that both small businesses would qualify. Others have simply invented “fictitious employees, so they can claim the increase in cash,” artificially inflated their payroll to increase their handouts, or resurrected corporate shells.
Companies, or their tax planners who have implemented these schemes, will be “required to reimburse any amount overpaid,” the ATO said.
This is a totally different approach from that adopted for the “15% of JobKeeper beneficiaries. [who] saw an increase in turnover in April 2020 compared to the previous year â, to which the Treasury did nothing until October, when accessibility was limited to companies that suffered a âreal drop in turnoverâ. Now the treasurer is resisting demanding any return.
When he was a backbench MP in 2011, the young Frydenberg lambasted the opposition GFC stimulus for having “fostered a culture of expectation with their lavish handouts ranging from pink bats to theaters. school, computers in schools to decoders â.
Ten years later and under Frydenberg’s watch, 243,000 ineligible companies applied for the cash grant (which the ATO immediately refused) and 30,000 companies had their payments suspended while undergoing “cash checks.” ‘eligibility’. And 200,000 companies received JobKeeper despite reserving an increase in revenue in the program’s first six months, securing some $ 13 billion.
Rather than attack such a right, Frydenberg this week “absolutely” encouraged high-performing companies to voluntarily reimburse their JobKeeper. But with no incentive for unlisted companies to do so, we are already assured of the outcome.