So far, only one man, a 55-year-old, has been arrested, and charged with breaching bail for an unrelated offence but the Australian Federal Police says investigations continue.
Australian Federal Police Assistant Commissioner Kristy Schofield claimed the criminal operation took money from about 1200 business and issued fraudulent invoices for pretended goods and services.
“The participating business, then received their funds back as cash minus a commission. This is commonly known as false invoicing arrangement,” she said.
They raided seven homes and businesses across Sydney on Friday and seized more than $500,000 in cash, financial documents, electronic devices, mobile phones, a gel blaster firearm and fireworks.
The Australian Tax Office also made searches at five sites without notice in NSW and Victoria.
AFP Detective Acting Superintendent James Rowe said tax fraud and financial crime robbed Australians of money that could help communities.
“The AFP works closely with the ATO to ensure people who cheat the tax system or enable others to avoid their obligations are not rewarded for their conduct,” he said, in a statement.
ATO Deputy Commissioner John Ford said the operation showed it would act against people running false invoicing schemes to avoid tax and super payments.
“The SFCT is warning businesses against using these types of arrangements. We will effectively deal with those who engage in false invoicing, or other illegal financial arrangements and work with partner agencies where appropriate,” Ford said.
The 55-year-old man faced Bankstown Local Court on Friday and will return to court on May 31.
The AFP believes billions of dollars are laundered in Australia every year.
That was described as the most complex AFP-led money laundering investigation in Australian history.
