NSW Another Company Using My ABN to Invoice Clients

[Sammiecoad]

I have been made aware that another company was using my ABN without my knowledge for invoicing purposes. As far as I know, this was going on for at least a few months. When I was notified by the actual person who issued the invoices, he seemed to think that he could issue me a invoice in my company name with an approx amount of $60,000 and stated that him doing this will even out what he has done and there will not be any affect. He even mentioned that he had spoken to the ATO and they advised that you could use someone else's ABN.

I know for a fact that is bogus especially if I was unaware of what was happening. I have requested time and time again for a copy of all invoices that have been issued under my ABN or at least a total of GST charged. Initially, it was him who asked to sit and sort it all out. Unfortunately I cannot contact him and have tried numerous times. I need to know what I can do and where the best place is to go.

So you are aware, I have not been in business for the past 2 years and the previous 3 years before then when I was in business I didnt submit any of my tax returns to date due to various reasons. I have that all sorted now and I am ready to submit my tax returns but am needing to sort the issue I now have with the above. What I can do? What can happen to the other company owner ?

Will I be entitled to any type of payment (compensation) for the stress, trouble and misuse of my ABN?

 

[Sophea]

Sammiecoad,

First things first. Get in contact with the ATO and tell them everything you know about this situation. It is going to affect your tax bill.

Second, what he is doing is not only illegal, (avoiding tax & fraudulently using your ABN) he is engaged in misleading and deceptive conduct. Section 18 of the Australian Consumer Law prohibits a person, in trade or commerce, from engaging in misleading or deceptive conduct which enables a person to seek compensation for harm caused by a breach.

The ATO may be able to assist with determining the extent to which he has invoiced using your ABN and make a record that they are fraudulent, omitting them from your taxable income. If they will not do this and you end up getting charged tax on all of the income logged against your ABN, you could potentially sue him under the ACL for misleading and deceptive conduct and seek compensation for the additional tax you had to pay plus costs.

 

[Rod]

Get the police involved as well. This guy sounds like he is committing fraud. You need to protect yourself from other claims that may arise as a result of this person's activities.

Having a police investigation exonerating you might help with other issues that can arise.