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$22.7 Million: ATO Hands Down Record Fine For Tax Rort

SYDNEY: A former tax agent has copped a massive penalty for scamming clients into claiming oversized tax offsets using a research and development ruse.

Last week, Sydney-based Paul Bogiatto was ordered by the Federal Court to pay $6.51 million, $6.01 million and $3.65 million for his three related entities: Ryusei, Lambda Chase Chartered Accountants and Lambda Chase Service respectively.

Bogiatto was a registered tax agent and chartered accountant between 2012 and 2015 when he advised 12 clients about lodging overstated claims for an R&D tax offset.

Bogiatto systematically exaggerated his clients’ spending with claims that didn’t reflect actual expenditure, the ATO said in a statement.

In total, the R&D tax offset refunds that were paid to Bogiatto’s clients amounted to $45.5 million.

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