The Australian Tax Office (ATO) on 30 October 2013 announced that it is investigating companies within the gold bullion sector for a total of AU$65 million ($61.5 million) of alleged goods and services tax (GST) fraud.
The investigation is a part of a wider effort by the ATO to investigate GST fraud and evasion. The ATO has suggested that there will be further audits of companies in the industry to establish the extent of any fraud.
It is alleged that companies working in the gold bullion area deceitfully claimed GST credits and failed to report their tax liabilities rightly. The companies also structured syndicates to cover the genuine nature of their activities and to stay away from detection.
