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  • Protecting taxpayers and the community

    GST non-compliance

    We want to ensure that everyone pays their fair share of tax, so that taxpayers doing the right thing are not disadvantaged by unfair practices.

    We are doing this by:

    • using new risk indicators to detect incorrect or fraudulent refund claims on activity statement credits
    • issuing pre-due date lodgment reminders to taxpayers via SMS and post
    • contacting taxpayers with overdue activity statements
    • verifying refunds by phoning or visiting taxpayers and contacting third parties to substantiate claims
    • matching sales and high-value transactions to activity statements, and using information on asset transactions (for example, in the property industry) from state revenue offices and land titles offices
    • comparing businesses to small business benchmarks for their industry to identify cases for audit or review. Businesses performing outside their benchmark range may not be recording or paying tax on all their transactions, especially cash transactions
    • using the small business benchmarks to calculate default assessments where a business has reported insufficient or unreliable information, or has failed to meet their lodgment requirements
    • increasing our focus on taxpayers who have multiple outstanding activity statement obligations, including telephony-based lodgment enforcement, raising default assessments and, in some cases, prosecution action
    • taking firmer action against taxpayers that do not work with us to address their debts.

    Taxpayers who choose not to comply with their GST obligations may face serious consequences, including interest, penalties and potential prosecution.

    We will audit and, where appropriate, prosecute taxpayers who:

    • deliberately fail to register for GST when they need to
    • intentionally fail to report, or consistently under-report, their tax obligations
    • conspire with others to evade or avoid tax obligations
    • intentionally do not meet their tax obligations.
      Last modified: 22 May 2017QC 23695