Tax Offences
Have you been charged with Tax Fraud?
The Australian Tax Office (ATO) may have contacted you regarding an investigation into suspected tax evasion or tax fraud offences. Early legal advice and representation are crucial in navigating these serious matters for the best possible outcome. Contact us today for strategic advice from our experienced Australian tax law lawyers.
Tax offences in Australia
What is tax crime?
Tax crime refers to the misuse of Australia’s tax and superannuation systems for financial gain. These offences are taken seriously by the courts due to their impact on public revenue and integrity. Tax crime broadly includes hiding cash wages during employment, tax avoidance, using complex offshore secrecy arrangements to evade taxes, and falsely claiming tax refunds or benefits.
The financial and personal consequences of being charged with tax offences can be severe, affecting not only your finances but also your reputation and prospects of travel and employment, including directorships.
White-collar crime
Tax crimes are classified as white-collar offences, meaning they are non-violent but financially motivated. Our clients are usually business owners, companies, or government officials. Penalties for these crimes vary depending on the severity but can include fines, criminal convictions, community service or probation, and terms of imprisonment.
How are tax crimes investigated?
The Australian Tax Office (ATO) regularly updates its systems and employs sophisticated data-sharing technologies to detect tax offences. While the ATO handles minor tax offences, more serious cases are referred to the Commonwealth Director of Public Prosecutions (CDPP) for criminal prosecution. Tax evasion typically involves a deliberate act or omission to evade tax obligations. Tax fraud, a more serious offence, occurs when false statements are made to the ATO or when reckless carelessness leads to inaccuracies in tax reporting.
Relevant legislation
Tax offences in Australia can be prosecuted under several Commonwealth laws, including the Commonwealth Criminal Code, Taxation Administration Regulations, Proceeds of Crime Act, and Crimes (Taxation Offences) Act.
Common tax offences
Examples of tax offences include failure to lodge taxation returns, recklessly claiming deductions that the taxpayer was not entitled to, withholding information from the Commissioner or failing to keep records, submitting false, backdated, or altered documents, paying wages in cash and failing to report them to the ATO, not remitting GST, Pay As You Go Withholding (PAYGW), or Superannuation Guarantee charges, making false statements to the ATO, and disguising personal expenses as business expenses for personal benefit.
Who investigates tax crime?
As Australia’s tax laws are extensive and ever-changing, the ATO alone cannot investigate all tax offences. To help establish more effective criminal tax investigations the Australian Federal Police established the Serious Financial Crime Taskforce (SFCT). This task force specifically targets financial crimes such as tax fraud.
The government agencies that often work together as part of this task force include:
Australian Tax Office (ATO)
Australian Criminal Intelligence Commission (ACIC)
Australian Federal Police (AFP)
Attorney General’s Department (AGD)
Australian Securities and Investments Commission (ASIC)
Australian Transaction Reports and Analysis Centre (AUSTRAC)
What to do if you have been charged with a tax offence?
As tax offences are a serious criminal offence, it is crucial that you get legal advice and representation from a tax fraud lawyer. Our criminal defence lawyers have decades of combined criminal law experience in all serious and complex criminal offences.
Contact our Brisbane criminal lawyers today for strategic advice for all tax related criminal offences.
Key points
Charge process for a tax offence
Receiving a summons
If you are charged with a tax offence, you may receive a Summons to Appear before a Magistrates Court. This document outlines the charges against you, the court date and time, and the court location. The summons can be served by post to your last known address or business, and it must be sent at least 21 days before the court date.
Seeking legal advice
It is crucial to seek legal advice promptly after receiving the summons. Legal representation can help you understand the charges and guide you through the process. Once retained, the first step is for your lawyer to request the relevant documents from the prosecutor, including the fact sheet summarising the allegations.
Understanding your options
After reviewing the evidence, your lawyer will discuss with you the points you agree and disagree with. Based on this, they can provide advice on your options, which generally include:
Pleading guilty.
Pleading not guilty and preparing for trial.
Negotiating with the prosecutor to amend the facts or discontinue the charges.
Requesting an adjournment
If you are unable to seek legal advice before the court date, you can request an adjournment. Courts often grant adjournments at the first hearing, especially if you need additional time to obtain legal representation. If approved, the court will set a new date, usually a few weeks later.
Ongoing support
Throughout the process, your tax lawyer will be available to assist at any stage, even at short notice, to ensure your case is handled effectively and your rights are protected.
Penalties for tax offences
What are the penalties for tax offences?
Penalties for tax offences in Australia can range from fines to terms of imprisonment, depending on the offender's personal background and the seriousness of the offence. Factors such as the level of intent, the financial value involved, and the complexity of the offence play a significant role in determining the penalty.
Factors considered by the ATO
The Australian Tax Office (ATO) considers several factors before deciding whether to initiate court proceedings, including:
The financial value of the alleged offence.
The seriousness and impact of the offence.
Whether the offender has any prior criminal history.
The protracted nature of the offence and its duration.
The level of sophistication involved in committing the offence.
The need to deter the public from engaging in similar behaviour.
Administrative penalties and interest charges
In some cases, the ATO may choose to impose an administrative penalty rather than pursuing court proceedings. These penalties are designed to encourage taxpayers to take reasonable care in meeting their tax obligations. Additionally, the ATO may apply interest charges to late payments, further incentivising compliance with tax laws.
Understanding these penalties and the ATO’s approach to tax offences is essential to navigating any allegations effectively. Seeking early legal advice can help you mitigate penalties and protect your rights.
