The Australian Tax Office warned property scammers to pay their taxes to avoid facing criminal charges.
A real estate flipper in Victoria was sentenced to two years and 10 months in jail for escaping taxes amounting to $ 1.7 million. The offender, Simone Semmens, purchased, developed and sold 10 luxury properties in Toorak, Portsea and Caulfield North.
Semmens sold the properties over $ 20 million for a total of $ 4.4 million. She claimed that the properties were for personal use. However, ATO stated that it should have been registered for the goods and services tax (GST) and filed commercial activity statements (BAS).
"If you buy, sell, or develop a property that is not your primary residence, you have tax obligations, and many TV shows make the flipping of properties look like a fun and lucrative activity. People must also be aware of their tax obligations, "said Ian Read, Assistant Commissioner of the ATO and head of the criminal law program.
Read also: Flipping and Selling: The Advice You Need Before You Begin
According to ATO, real estate scammers must register for the GST if their real estate sales exceed the $ 75,000 threshold.
"We know that most people are trying to do what is right and we will support those who do it, but to ensure that the community does not run out of essential funds and to protect the integrity of the system, we need crack down on those who deliberately do the wrong thing, "said Read.
Those who purchase land or property with the intention of exploiting it for resale to profit must also be aware of their fiscal obligations.
"People like this get an unfair advantage over Australians doing the right thing and robbing the Australian economy of revenues that could have been spent on essential services. is not without a victim and we will not tolerate deceiving the tax system, "said Read.
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