Little recovery of GST losses

Press, 17 June 1988, Page 1

Little recovery of GST losses

By

GLENIS CARROLL

The Inland Revenue Department has recovered only $700,000 of an estimated $7.5 million believed to be wrongly paid out in goods and services tax refunds. Since it began its Investigation into GST fraud late last year, the department has uncovered what it believes to be fraud attempts totalling $11.9 million. . Intervention by tax investigators prevented $4.4 million being paid out but at least $6.7 million has still been lost The Deputy Commissioner of Inland Revenue, Mr David Henry, said the department did not know how much of the outstanding amount it would be able to recover. Between 17 and 20 cases of suspected GST fraud had been investigated or were under investigation. “In three cases, people have been convicted. Others have reached the stage of complaints with the police,” Mr Henry said. The recovery of either money or property in the cases was being looked at, he said. Mr Henry said the- department’s investigation into GST fraud was continuing.

A number of methods had been used to defraud the department of GST, although all had common themes, he said.