ATO Alleges Adgemis Companies Claimed $1B in Fake Expenses, Pocketed $78M in GST Refunds

The Australian Taxation Office has alleged that JAGA Group Constructions, a company within Jon Adgemis’ corporate structure, submitted over $1 billion in spending claims and received $78 million in GST refunds between March 2021 and July 2024 through sham arrangements. In Federal Court on August 12, Adgemis’ former chief financial officer Alexander Andruska accused the businessman of knowingly funding his lifestyle through fraudulent tax rebates.

What the ATO alleges

The ATO claims JAGA Group Constructions reported $1.05 billion in spending and obtained $78 million in GST refunds over three years. The tax office alleges development agreements and associated invoices were part of sham arrangements between JAGA and other companies in Adgemis’ group. Tax invoices were created with retrospective dates that did not exist when transactions occurred, according to ATO documents presented in court.

Key evidence of the scheme

The ATO cited a development fee charged by Strand Operating in January 2022. The company did not register for GST until July 2023, issued only one invoice, conducted no other business and was never paid. JAGA liquidator Timothy Cook told the court he found records with large dollar values that were hard to reconcile. The ATO alleged the invoices were part of sham arrangements designed to generate false GST refunds.

Adgemis’ CFO turns against him

Alexander Andruska told Federal Court that Adgemis was aware the tax claims were dodgy. Andruska, who became CFO of Adgemis’ personal vehicle JAGA, said the businessman used GST refunds the tax office alleges he was not entitled to claim in order to fund his exorbitant lifestyle and hospitality empire. The allegation marks a dramatic shift as Andruska had a long-standing association with Adgemis.

Adgemis’ financial collapse

Adgemis founded Public Hospitality Group in 2021 and grew it to 22 properties across Sydney and Melbourne before its collapse. The ATO claims he owes $162 million in tax. Adgemis filed for personal bankruptcy in October 2025 with debts exceeding $1.8 billion. He denies any tax fraud. The ATO has scrutinised his affairs for at least two years, including an office raid in 2024.

Final Thoughts

The ATO allegations and Andruska’s testimony expose a systematic scheme to inflate expenses and claim fraudulent GST refunds worth tens of millions. With Adgemis already bankrupt and owing $162 million to the tax office, the Federal Court examination will determine whether criminal charges follow.

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