Operation Protego: Lee James Sheridan sentenced to prison after ATO nabs GST rort

Perth man Lee James Sheridan has been sentenced to prison after a $377,820 GST rort that was uncovered by the Australian Taxation Office. Mr Sheridan pleaded guilty in the District Court to the offence of negligently dealing in the proceeds of crime after receiving the “huge” haul of GST refunds based on false documents. The cash followed a scheme where a third party lodged a series of business activity statements using Mr Sheridan’s personal details “fraudulently claiming GST refunds”. Mr Sheridan had been “wilfully blind” in providing those details, the ATO said, adding that he “received and spent the fraudulently obtained GST refunds, which were the proceeds of crime”. “Some of that money was paid to the person who had lodged the fraudulent BAS which caused him to receive the payments”. More than 50 people have been convicted following the ATO’s Operation Protego to crack down on GST fraud promoted through social media. During sentencing, District Court Judge Karen Shepherd said the offending was underpinned by a methylamphetamine addiction. “You were taking methylamphetamine heavily during the period leading up to when you met the third-party (which submitted the statements),” Justice Shepherd said. The woman had been connected to Mr Sheridan’s drug dealer and had offered to lodge refund statements on his behalf, the court was told. But Mr Sheridan could be out of jail in just weeks. His two year sentence was backdated to March and he will be released on a good behaviour order after six months. ATO Deputy Commissioner John Ford said GST fraud is not a victimless crime. “If you choose to engage in GST fraud, you are actively taking away funds that could be used on services that benefit the community such as healthcare, infrastructure and education,” he said in a statement. “‘We have already warned Australians against becoming involved in GST fraud. “This outcome demonstrates that those who engage in GST fraud will be prosecuted with the full force of the law.” The ATO said Operation Protego had taken action against 57,000 alleged offenders and more than $300 million of penalties and interest had been meted out. More than 100 people have been arrested. Protego is the Tax Office’s crack squad chasing down GST fraud after a social media-driven surge in fake refund claims.