Fraud claims rock US auto scheme

AMERICA'S cash-for-clunkers scheme gave the US auto industry a much needed boost during the recent global financial crisis.

And according to a new report it was also a financial boost for prisoners and dead people.

Reuters has reported that an investigation by the tax department watchdog found that there was more than $US150 million worth of fraudulent claims under the scheme.

Included in that amount were more than 400 prisoners, who managed to make claims for vehicles purchased during the scheme despite being locked up. There were 18 children under 15 identified and even some people who were deceased.

"While no amount of fraud is acceptable, more than 4.3 million taxpayers claimed more than $7.2 billion in qualified motor vehicle deductions and only a small percentage involved questionable claims," read a statement from the Internal Revenue Service.

The Australian Government had planned to implement a cash for clunkers scheme, whereby old cars would be bought by the government for more than their market value and the money used to buy a new car.

The idea is to get older cars off the road and get people driving newer, safer, more efficient vehicles. But plans to implement the scheme were later dropped.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Motorfest roars into town

ROARING SUCCESS: Crowds at the Gatton Motorfest on Saturday March 17 2018

Gatton Motorfest served up plenty of thrills this weekend

No Harm done in Gary's switch to organic farming

STILL GOING STRONG: Gary Harm of Mt Whitestone Farms doubts he would still be able to work his family's land, purchased in 1930, if he didn't make the switch to organic farming methods twenty five years ago.

Gary Harm of Mt Whitestone Farms doubts he would still be farming.

Rhonda McLucas going coast to coast across the UK for a cure

ROCKY ROAD: Gatton Real Estate principal Rhonda McLucas undertook the West Highland Way walk in 2017.

Rhonda McLucas is taking on the Coast to Coast Walk for a cause.

Local Partners