Taxation Offences
If you are reading this, it’s likely that you (or someone close to you) have been charged with a Taxation Offence. If so, you are no doubt under an enormous amount of stress. You need to find someone who not only know this area of the law, but who will make the process as pain-free as possible. LAC Lawyers specialize in the area of Taxation, and our firm has a worldwide reputation for achieving the very best possible outcome for our clients.
The Australian taxation system operates within a self assessment environment and relies on taxpayers acting honestly in complying with their taxation obligations as prescribed by legislation administered by the Commissioner of Taxation ("Commissioner").
The Commissioner is empowered to ensure compliance of taxation laws by various methods including administrative penalties and prosecutions.
Proceedings against taxpayers whose actions or omissions constitute an offence can be initiated by the Australian Taxation Office ("ATO") or the Commonwealth Director of Public Prosecution ("CDDP").
The main taxation offences are contained in the following legislation,
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Taxation Administration Act 1953
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Income Tax Assessment Act 1936
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Sales Tax Assessment Act 1992
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Fringe Benefit Tax Assessment Act 1986
These Acts provide a range of taxation offences, including
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Making false and misleading statements.
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Failure to correctly keep accounting records.
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Failure to lodge taxation returns or activity statements.
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Failure to pay tax or remit the tax deductions of employees.
In more serious cases a taxpayer can be prosecuted for offences involving fraudulent conduct under the Commonwealth Criminal Code 1995. Other serious offences under the Code involve the obstructing or hindering of a Commonwealth public officer by violence, threats or intimidation.
In deciding whether to proceed to a prosecution, the ATO or the CDDP they will rely on their own respective published guidelines. The main considerations will include the seriousness of the offence and the particular circumstances of the taxpayer.
Another important consideration whether to commence a prosecution against a taxpayer would be to demonstrate to the wider community the importance of compliance of the tax laws and thereby act as general deterrent.
TAXATION OFFENCES BY CORPORATIONS
Persons who are involved in the management of corporations that breach taxation laws may be held criminally liable for those breaches as if they committed the offences themselves. Although it is a defence to that liability if the person can show they were not directly or indirectly involved in the activity that caused the offence.
Often a person is unaware of the obligations they take on when they have been appointed to a management position in a corporation and it advisable that they obtain appropriate legal advice in this regard.
TAX AGENTS AND TAX ADVISORS
Taxpayers often rely on the advice and role of tax agents and advisors with respect to their taxation affairs. Where a tax agent or advisor is knowingly involved with a taxpayer to submit false information to the ATO, both may be charged with the same offence.
Aggressive tax schemes have often been promoted as a way of minimizing taxpayers obligations but have later been deemed to be tax avoidance schemes. In these cases taxpayers and their agents or advisors have suffered the full force of criminal responsibility.
Taxpayers should be wary of any scheme that is promoted to avoid their taxation liabilities and are strongly advised to seek the independent legal advice with regard to the legality of such promoted schemes.
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Taxation Offences Articles
Criminal Law - Sentence and penalty options available to courts if convicted of a criminal offence
Date: September 26, 2005
Author(s): LAC Lawyers
Murder. Bigamy. Robbery. Bushfires. Terrorism. Domestic violence. Computer offences. Concealing the birth of a child. Fraud. Rape. The list of criminal offences for which a person may be convicted in any Australian jurisdiction is extensive.
Tax Evasion - Offshore Activities
Date: May 04, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
All member countries of the OECD’s forum on tax administration including Australia are working together to identify taxpayers’ bank accounts linked to Lichtenstein to counter the effects of tax evasion.
Tax Law - Vanuatu and the use of overseas tax havens
Date: May 08, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
For many years now a number of Australian taxpayers have been using overseas tax havens to shield their wealth from the Australian Taxation Office. Although there is nothing new in this it has come to greater prominence with the advent of Project Wickenby.
Taxation Law - CGT and Trust Cloning
Date: June 10, 2009
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary), Adrian Culas LL.B. (Hons.), CLP.
A Discretionary trust is one of the most sought after trust structures in view of the enormous benefit that follows from the establishment of such a trust. The Discretionary Trust structure creates a framework for family assets to be passed from one generation to another without losing control over key assets, allows for the protection of assets from creditors, creates an effective tax structure and in particular allows access to Capital Gains Tax (CGT) concessions.
Taxation Law - Failing to Furnish Income Tax Returns - Part 2
Date: November 01, 2007
Author(s): LAC Lawyers
Whilst it is conceded and supported that Income Tax Offences are serious matters and are far from trivial, there may be objective facts and mitigating circumstances which would warrant the non-recording of a conviction as provided for in section 19B.
Taxation Law - Tax Evasion - How Do The Criminal Courts Treat Tax Evaders
Date: October 11, 2006
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The most serious case in this area was handed down by the New South Wales Court of Criminal Appeal in R. v Ida Ronen, Nitzen Roden and Izhar Ronen on the 19th April 2006. The message which the courts delivered in this case is that they will treat all cases of serial tax evasion as extremely serious leading to long periods of imprisonment irrespective of the taxpayer’s individual circumstances even where taxpayers have paid their penalty tax in full.
Taxation Law - Tax Fraud
Date: March 14, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Butterworths Australian Legal Dictionary defines fraud as "an intentional dishonest act or omission done with the intention of deceiving". Obtaining a benefit by deception is to obtain an advantage or a profit or a gain by deceit.
What to expect when you call LAC Lawyers
Date: December 13, 2006
Author(s): LAC Lawyers
LAC Lawyers is a full service firm dedicated to the provision of superior legal services in Australia. Our aim is to provide unrivalled client satisfaction coupled with high quality service and advice. When you call LAC Lawyers our friendly reception staff will spend time with you to identify the area of law your enquiry relates to then pass you on to one of our qualified solicitor's who can help you.