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In a media release issued on 1 September 2014, the ATO warned the community to be aware of fraudsters as the scammers target people lodging their income tax returns by the 31 October deadline.

New statistics reveal a 37% spike in the number of scams reported to the ATO between September and October last year.

The ATO said: "People should also be aware of a nasty phone scam where taxpayers are threatened with arrest if they do not pay a fake tax debt over the phone."

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