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Offline 360c

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Systems are only as good as companies that declare. This scam has been around forever - usually the new company has a cousin or some other dupe as director, takes all payments, lodges no returns for year one and winds up / liquidates end of that year with all cash mysteriously gone and dupe director then bankrupts and is funded for the next 3 years from a share of stolen returns.

I guess I'm not very good at thinking like a criminal :p

Some people  spend their lives looking for holes to exploit in systems. There have been more than a few of those types in Ferrari circles over the years :doh:



Online TomE


  • Joined: Aug 2010

  • Location: ADL
They scam went like this.

Many sole contractors (think IT guys and consultants etc) use payroll companies to manage tax, super and other compliance shit. They donít want to have the headfuck of dealing with an accountant, setting up entity and all that jazz.

Normally these payroll companies take a 2 -3% clip of the ticket for managing the whole process.

These guys charged nothing to do it! Warning signs already right. They claimed they made money selling financial product and health insurance.

If you are a small to medium size business and you employ people you have to remit PAYG for your employees to the tax office once a qtr. If your larger its once a month and if you are seriously big once a week.

It look's like they used a fuckload of companies to get around remitting the money to the tax office too frequently and also flying under the radar. Then they probably decided to just under remit.

Nailed it.

My wife is an IT contractor and used Plutus until January 2016. They got greedy and started debiting her 5% to pay payroll tax so we started looking into them. Her complaints ended up with a call from CEO which I found really strange.

I could never understand their business model. They were also apparently providing contractors with  free professional liability insurance under a group policy as well. She cancelled the payroll arrangements and started contracting through her own company. As they say no such thing as a free lunch.

"There's too many self-Indulgent wieners in this city with too much bloody money! Now, if I was driving a 1967 275 GTB four-cam... "



Online TomE


  • Joined: Aug 2010

  • Location: ADL

I call bullshit on the $165m dollar figure.

All the IT contractors we know are on  $150k+. There have been reports of up to 6000 contractors involved.

We are waiting to hear from the ATO how much PAYE tax they have received under my wife's TFN.
"There's too many self-Indulgent wieners in this city with too much bloody money! Now, if I was driving a 1967 275 GTB four-cam... "



Offline 360c

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All the IT contractors we know are on  $150k+. There have been reports of up to 6000 contractors involved.

We are waiting to hear from the ATO how much PAYE tax they have received under my wife's TFN.

Pretty sure you will still be on the hook for any underpayment.



Offline Fil-Ski


  • Joined: Feb 2009

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  • Location: Adelaide
Pretty sure you will still be on the hook for any underpayment.
No way.
That would set a bad precedent.
Imagine your employer is bankrupt and your forced to pay the PAYG the withheld.



Offline Fil-Ski


  • Joined: Feb 2009

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  • Location: Adelaide
All the IT contractors we know are on  $150k+. There have been reports of up to 6000 contractors involved.

We are waiting to hear from the ATO how much PAYE tax they have received under my wife's TFN.
I hear they didn't remit super as well.



Offline 360c

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No way.
That would set a bad precedent.
Imagine your employer is bankrupt and your forced to pay the PAYG the withheld.

PAYG is different because the employee is not allowed to submit their own PAYG tax, it is the legal responsibilty of the employer.
If the employer happens to use a sub-contractor to make the payments, the employer is still liable for the payment being made.
They could sue the contractor for damages; but the liability for payment can't be passed on to the contractor.

I'm sure one of the AE legal eagles could confirm this.






Offline scud

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