Tax season is the time when two groups of people work round the clock. The first one is the group of tax accountants and return-filing specialists who work to help individuals minimise their tax burden. And the second one is the group of scammers who work full-time to rob hard-working Aussies of their hard-earned money. They use multiple tactics and psychology to scam unaware Aussie individuals.
Let’s dive deeper into the most common tax scams and how you can spot them from afar.
What Are the 4 Most Common Tax Scams in Australia?
Phishing Emails and SMS
This is the most common scam that targets Aussies during the tax season. An email or SMS drops into your inbox. It appears to be from the Australian Taxation Office (ATO). It will likely say you have some tax liability or have a large amount of tax refund due. Some might be even simpler, asking you to verify your information. These messages and emails will have a tone of urgency and want you to act immediately. But beware! These are not genuine emails or SMSs. These are phishing attempts designed to steal your personal details.
They do look genuine as the scammers attach ATO logos and use official language. But don’t get trapped with this façade. If you’ll look closely, you will find a lot of signs that indicate these are a part of the scam. For e.g., you will find misspelled domain links or grammatical errors. When you click on these links, they will take you to the fake ATO website. Once you enter your details, they can steal your private information like Tax File Number (TFN)
Aggressive Phone Calls: Threats and Intimidation
You are sitting calmly on your porch, sipping a cuppa, and you get a call from some unknown number. The individual on the other end talks to you as an ATO official in stern language. They might use an aggressive tone and demand the payment of your outstanding tax debt.
They might also threaten you with legal actions, suspension of your TFN, or even arrest if you fail to comply with the,
Your first step, in this case, should be to disconnect the call! Remember, ATO rarely calls the individuals directly. You will get the call only if you have initiated the inquiry or have a long-standing tax debt. And even in the latter case, the language will not be aggressive or threatening. Moreover, no ATO official will ask you for payments via unusual methods like gift cards, cryptocurrency, or money transfers.
Unexpected Tax Refunds: Too Good to Be True
If you ever get a phone call or an email that claims that you have a massive tax refund pending, trust us: it’s a clear scam. Remember, if it is Too Good To Be True, it isn’t! These communications are designed to make you fall into the trap. When you move ahead with the communication, these guys will share some links with you. Once you click on these links, malware will be downloaded to your system and steal all the useful information. Or they will steal the information you have already provided for fraudulent purposes. So, if someone pushes you to click on any suspicious link to claim your tax refund, DON’T! Contact a certified tax accountant like Nanak Accountants & Associates for the right guidance.
Tax File Number Theft
Your Tax File Number (TFN) is a vital piece of information used for tax purposes. Unfortunately, scammers understand this and may target individuals to steal their TFNs. If they get their hands on your TFN, they can lodge fraudulent tax returns and claim refunds on your behalf.
This will leave you with a hefty tax bill and damage your credit score. So DO NOT SHARE your TFN details with any stranger or untrustworthy individual. If you are providing it to anyone for tax lodging purposes, make sure that the organisation has an office in Australia and they are registered too, just like Nanak Accountants & Associates.
Now that you are aware of the most common Tax Scams in Australia let’s talk about the steps you can take to protect yourself.
How to Stay Safe from Tax Scams?
Staying safe from tax scams is quite easy. Stay aware, follow the below-mentioned tips, and you are good to go!
Be Cautious with Unsolicited Contact
As we mentioned above, the ATO will rarely contact you via phone, SMS, or email. This will happen only if you’ve initiated communication or have an outstanding tax debt. If you get a call or SMS from anyone claiming from ATO, verify that information directly with ATO. To do so, you can call their official number (1800 008 540) or visit their website: https://www.ato.gov.au/.
Beware of Threats and Intimidation
The ATO will never use aggressive language or threaten legal action over the phone. So, if someone is doing the same with you, just hang it up and report it to the ATO. ATO officials do not indulge in such unprofessional behaviours and activities.
Don’t Fall for “Unexpected Refunds”
Suppose you have legitimate tax refunds. They will be visible on your myGov account or bank statement. So do not click on any links provided by individuals to claim these refunds.
Protect Your TFN
Keep your TFN confidential. Do not share it with anybody until and unless it’s absolutely necessary. And even if you have to share it, make sure it’s a trusted organisation like Nanak Accountants & Associates with a local presence.
Use Strong Online Security
Make sure you utilise strong passwords. The best option is to use a combination of uppercase and lowercase letters, numbers and even symbols. Enable two-factor authentication for your online accounts. Also, use the latest and updated antivirus software to protect your system from malware and phishing attacks.
Stay Safe; File Right
Tax scams are more common than you think. Scammers are lurking around, always wanting to steal your money. So follow the above tips, stay aware and get your returns lodged via a registered tax filing agent like Nanak Accountants & Associates. We can help you out in filing your tax returns and stay safe from such tax scams. We are an Australia-based tax consultation firm with our presence across the nation. Talk to our experts today for more details.
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