Instruction: Read the following scenario study and respond as per the following requirements: Benjamin, the owner of a small consultancy in Victoria, thought he could boost his income by creating false companies and submitting fraudulent activity statements to the ATO. Thinking that the sheer volume of activity statements the ATO processes would allow him to slip under the radar undetected, he created 17 bogus companies and submitted fraudulent activity statements for each of them. However, instead of the hefty GST refund he expected, Graham received a rather sever lesson in the ATOs ability to detect fraud and evasion by working with other government agencies, on this occasion, the Australia Federal Police. The ATO quickly identified his claims as suspect. Before GST refunds are issued, all claims are automatically checked against a set of criteria to detect incorrect or fraudulent statements. In this case, the GST Identity Fraud Model picked up some very clear fraud characteristics in the series of activity statements lodged. Once detected, the ATO undertook a detailed investigation where it became evident that a serious offence had occurred. His home and business premises were raided and documents and his laptop computer seized. Computer forensics easily detected the fraudulent drivers licences, passports and birth certificates used to register the bogus companies and create bank accounts for the GST refunds. Benjamin was charged with obtaining and attempting to obtain a financial benefit by deception. He was sentenced to five years imprisonment and had to pay $312,075 reparation. The judge said that fraud on the Commonwealth revenue was a serious offence which must be dealt with by way of custodial sentence. He pointed out that it was not just fraud on the ATO but fraud on the community as a whole.

Requirements: i) What review techniques ATO may have applied to analyse evidence of non-compliance to diagnose origin of fraudulent and dishonest business operations of Benjamin?

ii) What are the evidences of non-compliance which prompted ATO to conduct an investigation and develop a resolution?