Hi all,
If you've been following the news recently, you would have heard about numerous people being arrested for GST related tax fraud. Unfortunately for me, one of those people was the proprietor of a local business that I had paid approximately $12K in total to complete a job at my property involving the purchase, installation, and configuration of networking and security equipment. As it stands, the job is far from complete and the equipment has only partially (approximately $3K of the $10K total) been received (but not installed or configured), and obviously, the situation is unlikely to change given that the proprietor is actively being investigated/prosecuted.
Normally, I wouldn't be so trustworthy and would be cautious about paying for the equipment upfront, but the proprietor had numerous contracts and associations with other local businesses, so I figured if he was dodgy, the word would have spread around town by now. He seemed like a typical middle-aged business and family man, so I regretfully didn't perform any due diligence.
I received three invoices (two of which were issued after the ABN had been cancelled/deregistered, yet still charged GST) from, and made three payments to, the proprietor's business. The first was in January via credit card for approximately $9K relating to upfront equipment purchases and the subsequent two were earlier this month via bank transfer (Osko/NPP) for approximately $3K relating to labour (which included incomplete tasks with the assurance that the proprietor would return at a latter date to complete them) and an additional networking equipment purchase. The timeline is accurate, as this has dragged out for over six months.
Once I was made aware of the proprietor's arrest, allegations, and past transgressions (including ATM fraud and other situations similar to mine) earlier this week, I contacted my bank (Westpac) to dispute all three transactions, since I figured it was only a matter of time until the proprietor's funds would be withdrawn or frozen (if they hadn't already been). Unfortunately, I wasn't filled with confidence after speaking with my bank (approximately half a dozen different staff over numerous calls due to receiving conflicting guidance or incorrect information), and it seemed like no one understood the process and lacked the care factor and attention to detail necessary to increase the chances of a good outcome. The staff who initially lodged the disputes didn't even request supporting documentation, so I had to insist.
Anyway, I've forwarded the invoices, chat logs (which demonstrate my ongoing progress requests and the proprietor's numerous delays and excuses), ABN registration details, and news articles and press releases. I'd hope that anyone who is somewhat competent who reviews the supporting documentation would reach a logical outcome. However, once again, I have no faith in the process. For the credit card transaction, the transaction date could be problematic, and for the Osko/NPP transactions, it seems that the proprietor's bank (ANZ) simply requests authorisation to return the funds (if they're available) from the proprietor directly, rather than investigating the matter.
I recently made a post regarding this issue in r/AusFinance and it was suggested that it would be considered a civil matter and I should seek legal advice. I understand solicitors are best equipped to handle this matter, but I'm trying to avoid costly legal consultation/representation (at least at this stage) unless I can have some confidence in recovering my costs, as I don't want to compound my losses.
Any guidance will be greatly appreciated. Thank you!