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Taxation Offences:

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Taxation offences are considered to be serious offences and significant penalties are in place for those who commit such offences. Taxation offences fall under federal laws and are dealt with under the Commonwealth Criminal Code. There are also additional offences under separate taxation legislation. If you have been charged with a taxation offence, you should obtain legal advice immediately. Taxation law is an extremely complex area of law.

Some examples of taxation offences include:

  • Failure to lodge an income tax return or business activity statement;
  • Making false and misleading statements;
  • Lying or concealing identity;
  • Failure to keep adequate records;
  • Improper use of an ABN; and
  • Unlawful sale of excisable goods.

Penalties for Taxation Offences

A range of penalties exist for taxation offences and take the form of security bonds, community service orders, fines and imprisonment. Not all taxation offences will result in a criminal conviction however if a criminal conviction does result, it will affect the person’s employment and overseas travel. For criminal convictions, the maximum penalties may include imprisonment. 

The Australian Taxation Office has found that a majority of prosecutions have been in relation to a failure to lodge tax returns or business activity statements (where the person runs a business) and making false and misleading statements.

Failure to lodge tax return or business activity statement

An offence to fail to lodge a tax return or business activity statement will usually mean that the offender will be subject to penalties in addition to the payment of any interest or outstanding tax. Under the legislation, the offence is one of absolute liability which means that the offender does not need to be at fault or negligent to be convicted of the offence.

If the offence is a first offence, the offender may be subject to a penalty of $2,200. For a second or subsequent offence, the offender may receive a penalty of $4,400. Where a person is found to have committed more than two previous taxation offences, a sentence of imprisonment may also be considered.

Making false or misleading statements

An offence of making false or misleading statements may result is the imposition of fines and further penalties. This is also an absolute liability offence.

The maximum penalty for making false and misleading statements is a fine of $2,200. If the offender has been previously convicted, the maximum penalty becomes $4,400.

An example of a false and misleading statement may include a person falsely claiming that their tax is offset by his or her spouse when in fact that person does not have a spouse. Another example is where a person claims deductions for work-related or self-education expenses to which they are not entitled.

The Australia Taxation Office undertakes regular audits and if it is found that false and misleading statements have been made, the case may be referred for prosecution. It is critical that you contact a Criminal Lawyer to ensure the protection of your interests where a charge for a taxation office has been made, keeping in mind that such charges can result in criminal convictions.

Our Criminal and Taxation Lawyers are highly trained and experienced in the area of taxation offences. Contact our firm on (02) 9233 4048 or send an eamil to info@navado.com.au today to book your first free consultation with a qualified Criminal and Taxation Lawyer.

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