VIC Help with ATO and GST?

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22 September 2017
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Hey guys.

I've got a serious ATO question.

I'm registered for GST and freelance in my line of work. I've done no work this quarter, but did buy a laptop.

I paid cash, I also know the person who sold it to me. Anyway the invoice he gave me was for an "proformer" and said invoice, however it was for $2000 more than what I spent. He thought I would do this for a normal tax return and not for GST. I submitted my BAS statement and got a call yesterday asking me to provide the invoice.

The thing is, if I provide the invoice will they call the store and will I be caught or will the invoice be enough?

I know I did wrong, but like I said, did no work for 3 months and living off my savings, and the extra $200 I was going to get back will be a huge help.

I'm really worried
 

Tim W

Lawyer
LawConnect (LawTap) Verified
28 April 2014
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The document is either a proper Tax Invoice, or it isn't.

If it's a valid Tax Invoice, and you are registered for GST (even as a sole trader)
then you can claim an Input Tax Credit for the GST you paid.
But you can't claim more than what you actually paid, no matter what the invoice says.

An apportioned amount for the ex-GST cost of the computer
may also be an allowable deduction, but it also has to be the true amount,
and no more.

Yes, you have lied to the ATO by making a claim that is not true.
By claiming an incorrect ITC, you have claimed money to which you are not entitled.
This can be an offence.

And yes, by accepting an invoice (any kind) with an incorrectly large amount on it,
which you know (or reasonably should know) to be wrong,
you can be committing a separate, potentially more serious offence.

Take a little heart however that the amount in your case is small,
and may not attract much of a penalty, if any.

Take yourself to an accountant asap, and get it sorted out.
And when I say accountant, I mean a proper accountant,
and expressly not one of these seasonal tax agents
in a pop-up kiosk at your local mall.