🇦🇺Australia

Fraudulent Reseller Exemption Claims

1 verified sources

Definition

Unverified exemptions enable non-resellers to evade 10% GST, with dealers liable for uncollected tax plus penalties during audits.

Key Findings

  • Financial Impact: 10% GST + GIC on AUD 500,000 fraudulent claims = AUD 55,000+ liability
  • Frequency: Ongoing until audited
  • Root Cause: Manual or absent reseller status checks

Why This Matters

The Pitch: Retail Art Dealers in Australia 🇦🇺 risk AUD 50,000+ in fraud losses yearly. Automation verifies claims instantly, preventing abuse.

Affected Stakeholders

Compliance Officers, Sales Directors

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

GST Non-Compliance Penalties for Reseller Exemptions

AUD 5,500 minimum penalty per BAS failure; 10% GST shortfall on AUD 100,000 sales = AUD 10,000 leakage; 20-40 hours/month manual checks

Delayed Cash from GST Exemption Disputes

30-60 extra Days Sales Outstanding; 2-5% revenue tied up in AR (e.g., AUD 20,000 on $1M turnover)

Delayed Appraisal Invoice Payments

20-40 days A/R extension per appraisal; 1-2% financing cost on AUD 500-2,000 fees

Probate & Family Division Disputes

AUD 5,000-30,000 legal fees per dispute; delayed probate sales lose 2-5% value

Insurance Under-valuation Claims Losses

AUD 10,000-100,000+ per disputed insurance claim; 5-year update cycle amplifies risk

ATO Estate Tax Valuation Penalties

AUD 2,220+ minimum penalty per failure; typical AUD 10,000-50,000 per disputed estate audit

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