Taxation Law - Tax Evasion

However you look at it, tax evasion is a crime committed against the government that can lead to a 10-year imprisonment and the imposition of monetary penalties. Every year, the Australia Taxation Office comes up with a compliance program on tax and superannuation but despite this, cases on tax evasion increase year after year.

Tax evasion is the deliberate failure to pay taxes and, thus, it hinders the government from building new infrastructures and funding health programs, educational programs and other services which can benefit the public.

The Australian tax law mandates income tax deductions on all permanent residents of Australia regardless of their income source. Whether one’s earned income is from a company in Australia or a foreign country should not matter, as Australian residents should pay their taxes. On the other hand, an expat working, or operating a business, in Australia is subject to tax deductions from his income earned in Australia only.

These days there is absolutely nothing and nobody exempted from paying taxes simply because a taxpayer’s money makes up the revenue which the government disposes or spends for the nation’s well-being. Whether you purchase a box of imported chocolates for your bakeshop pastries, wholesale perfume, or a luxury car, you will have to pay a certain amount of tax. 

Meanwhile, individuals that run a company regardless of size and population should deduct taxes from the wages of their employees and remit to the government. 

One is sighted for tax evasion if he fails to declare his assessable income or claims tax deductions for expenses of goods and services that were not incurred at all