ATO warns: honesty is the best policy when claiming your tax refund this year

Tax Commissioner Michael D'Ascenzo today warned the community that if they are trying to defraud or overstate their refund claims this tax time then they are likely to be caught.

The warning follows a sharp increase in the number of potentially suspicious tax returns that have already been detected by the ATO.

"We are only a month into tax time and we have already noticed an increase of these type of claims compared to this time last year," Mr D'Ascenzo said.

"So far we have stopped nearly 40,000 returns that we believe include potentially overstated or fraudulent refund claims, which have included claims for spouse offset, education tax refunds and refund of franking credits. This is up from this time last year, largely as a result of the increasing sophistication of our systems to detect these claims."

"This has potentially prevented around $150 million in total refunds being inappropriately issued."

"Most of us do the right thing towards our obligations. However, if you are thinking of deliberately do the wrong thing - consider yourself warned."

The ATO will apply significant administrative penalties and may also prosecute taxpayers who attempt to defraud the revenue or superannuation systems by deliberately overstating their deductions or offsets.

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