The Serious Financial Crime Taskforce ('SFCT') is warning businesses about using illegal
financial arrangements such as false invoicing to cheat the tax and super systems.
False invoicing arrangements may consist of the following:
u an entity (the promoter) issues invoices to a legitimate business but no goods or
services are provided;

• the business pays the invoices, by cheque or direct transfer, and the promoter returns
  most of the amount paid to the owners of the business as cash;
• the promoter keeps a small amount as a commission;
• the business then illegally claims deductions and GST input tax credits from the false
  invoice; and
• the owners of the business use the cash they have received for private purposes or to
  pay cash wages to workers, and do not properly report the amounts in their tax returns.

  The SFCT is warning businesses against using these types of arrangements. It will "effectively
  deal with those who engage in false invoicing, or other illegal financial arrangements, working
  with partner agencies where appropriate. Those who try to evade the tax and super system
  will get caught and face the full force of the law."