A small number of people deliberately engage in criminal behaviour to evade their tax obligations or fraudulently use the system to obtain an improper financial benefit.
Criminal attacks on the tax system can be made by individuals and organised groups both within and beyond Australia’s jurisdiction.
In fairness to the majority of people who meet their obligations, and to ensure that community confidence in the tax system is maintained, we are strongly committed to deterring, detecting and dealing with serious tax evasion and fraud. A fraud on the Commonwealth is a fraud on all taxpayers and is to be treated seriously.
We take firm action against taxpayers, intermediaries and others who engage in tax crime.
We tackle serious evasion and fraud by:
gathering and analysing intelligence on risks and threats to the tax system
investigating suspected cases with a view to prosecution, often jointly with law enforcement agencies
working with the Australian Federal Police and the Commonwealth Director of Public Prosecutions to restrain and confiscate assets obtained from tax-related crime, by using the powers of Proceeds of Crime Act 2002
complementing our criminal investigation work with civil audit work and the application of tax penalties
publicising the outcomes of this work to raise community awareness, and
sharing information across partner agencies to achieve whole of government outcomes in tackling tax crime.
Convictions
In 2006–07, as a result of referrals to the Commonwealth Director of Public Prosecutions, 106 cases resulted in convictions for serious tax evasion or fraud, of which 64 received custodial sentences. For more information refer to Tax crime investigations and results.
As tax crime is often associated with other crimes, we cooperate with other agencies to investigate serious breaches. We participate in multi-agency task forces involving national, state and territory government organisations, such as Project Wickenby.
If you are worried that an arrangement you are involved in may be abusive of the tax system, you may wish to consider obtaining independent professional advice from an accountant or tax adviser who has no connection to the arrangement, or you can contact us (anonymously, if you like) to discuss your situation.
Taxpayers who come forward and contact us before they are the subject of an audit – and make a full and true disclosure – may be eligible for reduced shortfall penalties.
Taxpayer alerts are also available as an early warning to taxpayers and their advisers of significant existing, new or emerging aggressive tax planning schemes that the Tax Office is assessing for risk.
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