To protect the integrity of the tax system, there are consequences if you:
- fail to comply with a notice
- fail to complete the requirements of the notice in full
- give us false statements under the notice.
You may be liable to prosecution if you:
- refuse or fail to provide information, or to produce records or documents
- refuse or fail to meet with us or answer questions
- make a false or misleading statement.
The destruction of documents or failing to comply with a notice in full (for example, by not answering all questions) may constitute an offence. Whether we decide to refer a matter for prosecution will depend on our prosecution policy and the Commonwealth prosecution guidelines.
If you are unable to comply with a notice, or you consider the notice is invalid, you should contact us in writing to explain your situation and why you cannot comply.
Example – Not complying with a notice
Michelle had received a number of informal requests and formal notices to attend an interview since July 2013. She either did not respond or called to say that she could not attend and did not provide a contact number.
Michelle was convicted of an offence under section 8C of the Taxation Administration Act 1953 (TAA) for failure to comply with requirements under tax law. The notice subject of the prosecution had a compliance date in October 2013, but it was not until July 2014 that she attended and gave evidence. The court found that she had shown a total disregard of the requirement to attend and had wasted a significant amount of our time.
End of example
As an alternative to prosecution for making a false or misleading statement, we may apply an administrative penalty under Part 4-25 of Schedule 1 to the TAA.