TAX FRAUD

Tax fraud refers to the intentional evasion of paying taxes through illegal means. This can include:

• providing false information on tax returns (including business activity statements);
• failing to report all income or GST;
• claiming false deductions or GST credits;
• failing to pay taxes owed.

An Australian Taxation Office (ATO) audit is an in-depth review of an individual or business’s financial records and activities.

The ATO has the authority to conduct audits on a random or targeted basis, and individuals and businesses may be selected for an audit if the ATO has concerns about their tax compliance or if there are discrepancies in their lodged returns.

The purpose of an ATO audit is to ensure that an individual or business is complying with tax laws and lodging their tax returns and/or business activity statements accurately. 

During an ATO audit, the individual or business may be asked to provide documentation and information to support their tax returns and business activity statements. 

The consequences of tax fraud in Australia can be severe and may include fines and imprisonment.

The ATO takes a strong stance against tax fraud and has a number of measures in place to detect and prosecute individuals and businesses that engage in this type of activity.

If an individual or business is found guilty of tax fraud, they may be required to pay back any taxes owed, plus interest and penalties. In addition, they may face criminal charges and could potentially be sentenced to imprisonment. The courts have the discretion to impose a range of penalties for tax fraud, depending on the severity of the offense and the circumstances of the case.

Voluntary disclosure is a process in which an individual or business admits to failing to report or pay all required taxes and offers to correct the errors. Voluntary disclosures are typically made to the ATO through the submission of a formal statement and supporting documentation.

Making a voluntary disclosure can be beneficial in certain circumstances because it may allow the individual or business to minimise the potential consequences of tax noncompliance. If a voluntary disclosure is made before the ATO becomes aware of the noncompliance, the individual or business may be eligible for reduced penalties. 

However, it is important to note that voluntary disclosures are not always appropriate. If you are being audited by the ATO and are concerned about tax fraud allegations, it is recommended to seek legal advice to determine whether making a voluntary disclosure is in your best interests.

In certain circumstances, it may be possible to reach a settlement with the ATO in tax fraud matters. To be eligible for a settlement, the individual or business must fully cooperate with the ATO and be willing to pay most, if not all taxes, interest, and penalties owed. 

It is important to note that taxation settlements are not always available and are at the discretion of the ATO.

Our team of experienced lawyers are well-equipped to handle even the most complex tax fraud cases. We take the time to understand your unique situation and tailor our services to meet your specific needs. 

With a proven track record of success in defending against tax fraud allegations and negotiating favourable settlements with the ATO, you can trust that we have the expertise to effectively handle your case. We are committed to providing our clients with the best support and will be by your side every step of the way. 

In addition, we offer cost-effective and timely services to ensure that you receive the best value for your money.