Australian Taxation Office paid $12 million in refunds to fraudulent winery

The Australian Taxation Office (ATO) paid more than $12 million in GST refunds to Sans Pareil Estate, a small winery based in Hanwood, over a 14-month period between April 2021 and June 2022. This occurred despite the business initially informing the ATO that its expected annual turnover would be less than $2 million.

Court documents indicate the ATO issued 15 separate GST refund payments, with the largest single payment totaling $2.5 million. In one instance, a $1.73 million refund was issued based on an invoice for over $19 million worth of wine; however, the supplier later informed the ATO that the invoice was never issued and contained an incorrect Australian Business Number (ABN).

Aaron Salvestrin, the owner and director of the winery, pleaded guilty to three fraud offences after admitting the business altered supplier invoices to claim illegitimate GST refunds. Sans Pareil Estate, which operated with fewer than five employees for most of its existence, collapsed into liquidation with an alleged debt to the ATO exceeding $30 million. Salvestrin is scheduled to be sentenced in the NSW District Court in November.