The Serious Financial Crime Taskforce (‘SFCT’) is warning businesses about using illegal financial arrangements such as ‘false invoicing’ to cheat the tax and super systems.

False invoicing arrangements may consist of the following:

-an entity (the ‘promoter’) issues invoices to a legitimate business but no goods or services are provided;

-the business pays the invoices, by cheque or direct transfer, and the promoter returns most of the amount paid to the owners of the business as cash;

-the promoter keeps a small amount as a commission;

-the business then illegally claims deductions and GST input tax credits from the false invoice; and

-the owners of the business use the cash they have received for private purposes
or to pay cash wages to workers, and do not properly report the amounts in their tax returns.

-The SFCT is warning businesses against using these types of arrangements, and that they “will get caught and face the full force of the law.”

If you have any questions or would like to speak to one of our professional business and tax advisors, please contact our office on (08) 9392 7600 to make a booking or click here.

With three offices across Western Australia and over 20 years of experience, Acclaim Accounting is a dynamic team of highly trained and skilled individuals committed to providing innovative and effective advice, excellent service and maintaining only the highest standards in ethical professional practice