From Viral Hacks to Billion-Dollar Bust: The Untold Story of Australia’s $4.6 Billion TikTok GST Fraud
In 2020, a seemingly harmless dance trend swept through TikTok. But beneath the catchy tunes and synchronized movements lurked a sinister scheme, one that would evolve into the biggest tax fraud in Australian history. This is the story of how a simple scam, amplified by the uncontrolled power of social media, defrauded the government of billions and left thousands facing the consequences for rest of their lives.
The Bait: Make Easy Money, Just Ask TikTok
The scam cantered around Goods and Services Tax (GST), a 10% levy on most goods and services in Australia. By registering a fictitious business and claiming bogus expenses, individuals could exploit the trust based self-assessment system and fraudulently claim GST refunds.
But, how did they do it?
Influencers on TikTok presented it as a “government loan,” a quick way to make easy money. This led to thousands of fake businesses propping up and claiming thousands of dollars in tax refunds. Before the authorities could realize, the claims surmounted up to $4.6 Billion and $1.6 Billion were already paid out to alleged beneficiaries!
