A Melbourne man has been sentenced to 2 years and 11 months imprisonment after obtaining over $390,000 in fraudulent GST refunds and attempting to obtain a further $330,000, as well as failing to comply with a court order.
Acting Deputy Commissioner Kath Anderson commended the latest outcome under the ATO-led investigation Operation Protego.
‘There are no ifs, ands or buts here – if you don’t run a business, you don’t need an ABN and you cannot claim GST refunds. This is fraud,’ Ms Anderson said.
‘Fraud against the ATO is not tolerated and we continue the fight against criminals seeking to exploit the tax system.’
Joshua Merrett was sentenced for one count of obtaining a financial advantage by deception, one count of attempting to obtain a financial advantage by deception and one count of failing to comply with an order. The failing to comply with an order charge was due to Mr Merrett refusing to provide his phone passcode to the Australian Federal Police after they seized his phone.
Mr Merrett had registered for an Australian Business Number (ABN) for a business that specialises in staircase manufacturing and antique furniture repairs. Between June 2021 and June 2022, he submitted 31 business activity statements (BAS) containing false information. This resulted in $394,801 in refunds being paid within a 3-month period, which triggered an audit and account lock down.
In addition, he attempted to obtain over $330,000 in GST refunds, however this was stopped by the ATO.
Mr Merrett tried to avoid ATO auditors but could not escape the consequences of his deceptive actions. Two months following the last GST refund being paid, ATO investigators and the Australian Federal Police conducted a search warrant at Merrett’s residence. The search showed no evidence of any commercial activity, or sales or purchases consistent with running a business.
He was ordered to be released after serving 1 year and 8 months, upon entering into a recognisance to the sum of $1,000 on condition he be of good behaviour for a period of 2 years. He was also ordered to pay reparations to the amount of $392,917.74.
This conviction is not the end of the story for Mr Merrett. The debt from the fraudulent GST returns is still on his record and the ATO will continue to chase it down, which includes seizing any future refunds.
This matter was prosecuted by the Office of the Director of Public Prosecutions (Cth) (CDPP) following a referral from the ATO.
The ATO reminds the community that GST fraud is not a victimless crime. Those who engage in this illegal activity are actively taking away funds that would otherwise be used for essential services such as healthcare, infrastructure, and education.
The ATO will continue to pursue those who commit fraud through criminal investigations and debt recovery actions to enforce repayment.
As part of Operation Protego, the ATO has taken compliance action against more than 57,000 alleged offenders, and those involved in this fraud have already been handed in the order of $300 million in penalties and interest.
As of 31 March 2025:
- 103 people have been convicted with a range of sentencing outcomes, including jail terms of up to 7 years and 6 months and with orders made to restrain real property.
- The ATO has 3 individuals currently under active investigation.
- The ATO has finalised 61 investigations and referred 51 briefs of evidence to Commonwealth Director of Public Prosecutions.
You can confidentially report suspected tax crime or fraud to us by making a tip-off online or call 1800 060 062.
For more information about Operation Protego visit ato.gov.au/GSTrefundfraud.
Contact details:
[email protected] | 02 6216 1901