Tax Fraud:

Tax fraud is a serious offence that is distinguished from evasion or avoidance. Fraud involves the element of recklessness or carelessness.  What tax fraud means is not always completely clear and the boundaries of what is acceptable or unacceptable tax behaviour shifts over time. There is a long history of legislative action against artificial, contrived or deceptive schemes employed by taxpayers to fraudulently avoid paying tax. Proper and sound legal advice from a Taxation Lawyer is good business acumen to ensure that you comply with your taxation obligations, particularly when you engage in elaborate, sophisticated schemes to minimise your taxation liability.

There are many examples of tax fraud which can be intricate and far reaching.  The activities that may constitute tax fraud include the deliberate understatement or omission of personal or company assessable income, falsely claiming or creating artificial tax deductions, making false representations on notices of objection, deferring tax, money laundering and avoiding tax through complex overseas arrangements. Taxation law is a difficult, diverse area of law that is in a constant state of flux. It is full of intricacies and complexities and an experienced Taxation Lawyer may have regard to taxation profile to ensure your taxation management strategy is compliant with all relevant tax laws and authorities.

It is important to note that there are various criminal sanctions for tax fraud which may include imprisonment. The fraudulent evasion of various taxes can result in a myriad of penalties, fine and other consequences.Taxation law may impose penalties for tax fraud in any area such as income tax, GST, FBT, petroleum resource rent tax, minerals resource rent tax and the superannuation guarantee charge. Taxation law is directed against stripping arrangements which are designed to render an individual, company or trust incapable of paying tax. In relation to income tax, the Act makes it an offence to enter into an arrangement with a purpose of securing that a company or trust will be, or will be likely to be, unable to pay income tax that is then payable, or that will or may reasonably be expected to become payable in the future. It is also an offence to aid, abet, counsel or procure another person to enter such an arrangement. The maximum penalty can be imposed which is 10 years’ gaol, a fine of $170,000 or both. The person convicted may also be ordered to pay some or all of the tax involved. Consultation with a specialised Taxation Lawyer can be immensely rewarding and useful in ensuring proper compliance is achieved.

If you need further legal advice on your taxation matter, you may book an appointment with us by telephone on (02) 9233 4048 or by email to info@navado.com.au. 

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.