An investigation was launched earlier this month after a specialist IR team noticed some unusual returns and took a closer look.
Inland Revenue’s Sarah Bourke says “people who claim expenses that are not legitimate could be subject to sanctions, including a 150% evasion shortfall penalty and/or prosecution, as well as having to pay the money back.
“Our investigation has identified, and stopped, nearly three thousand fraudulent amended returns, including 542 received in just one night,” Sarah Bourke says.
“$151,787 of refunds were paid out before a new measure was put in place to stop the fraud while $4.015m in bogus claims was stopped. Inland Revenue is taking action to recover the money with one individual already under an instalment arrangement to pay it back.”
Sarah Bourke says the fraud scheme appears to be spreading through a community and/or workplace network.
“What initially appeared to be concentrated in the transport industry has broadened significantly to other areas across the country.
“As well several customers came into our Front of House in Auckland and Wellington earlier in the week wanting to reset their myIR passwords so they could amend their returns.
“They told IR staff the word in the transport industry was that there were people who knew how to get extra money and mentioned someone on social media offering to help people with the expense claims.
“Work is already underway to identify people promoting/running the scheme. If anyone is thinking they can make a quick buck by joining in the scheme they should think again. Inland Revenue is aware, can see what is happening and will take action. There are always consequences,” Sarah Bourke says,
Inland Revenue has also received anonymous information about what’s happening, information received after the scheme was picked up.