The Australian Taxation Office (ATO) is facing one of the worst integrity scandals in its history, after it was revealed that a massive GST refund fraud—amplified on social media—has cost taxpayers over $2 billion.
So far, four ATO employees have been convicted for their roles in the scheme, which involved submitting fake Business Activity Statements (BAS) to obtain GST refunds for purchases that never occurred. The scam exploded in late 2021, when how-to videos circulated widely on TikTok and other platforms, luring as many as 57,000 people nationwide.
Deputy Commissioner Nick Shizas condemned the fraud, noting that “more than 20,000 ATO staff serve with integrity,” but those who don’t “have no place in the ATO.”
Among the convicted is Paraskevi Vula Danassis, who fraudulently claimed $94,000 for a fictitious cleaning business. While she told the court some of the funds were used for dental surgery and paying off coercive loans from a former partner, the judge maintained that the funds were misused. She was sentenced to 18 months in prison, suspended with a two-year good behaviour bond.
In Adelaide, Gaya Ranasinghe—an ATO veteran who worked in audit—defrauded $16,000 and was sentenced to four months, also suspended.
Melbourne’s Hawa Akbar falsely claimed $50,000 and was sentenced to community service, while another unnamed staffer in Victoria was fined $4,000 for obtaining $35,000 in fraudulent refunds.
The most recent and high-profile case involves 25-year-old Baby Dee Zearwie, who worked for the ATO as an IT contractor during the height of the scam. She pleaded guilty to defrauding the government of nearly $90,000 and encouraging others to do the same.
Zearwie reportedly told a friend the scam was “legit” and then facilitated fraudulent claims by helping others set up fake companies and use their MyGov accounts. She received $44,939.60 directly from the fraud and is now on a repayment plan.
Federal prosecutors are pushing for a prison sentence, citing the need for general deterrence. “This is not a victimless crime,” prosecutor Greg Buchhorn said. “Tax evasion affects the whole community.”
Zearwie’s defence argued for leniency, citing her difficult upbringing in a Liberian refugee camp, family trauma, and current employment supporting NDIS clients.
Judge Caitlin English has ordered a pre-sentencing report, with sentencing scheduled for Friday, July 11.
The ATO has recovered only $160 million of the $2 billion lost—just 8% of the total—raising serious questions about systemic vulnerabilities and oversight in one of the nation’s most trusted institutions.
