Anyone got any idea on the penalty if you get caught not declaring income? Is there a fine or just repay what you owe. Asking for a friend.
Tax time
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iluvparis
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Honest mistake usually means just repay + interest from memory
As above, plus your friend would likely face more 'random' checks in the future.
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If its an honest mistake you are also a good chance of getting the interest taken off. Best method for that is pay the tax + interest, then ask for the interest to be refunded. Payment up front shows you are committed to settling you tax debts so ATO will view you in a better light.
If they find you and it looks like you have done something shady you will have penalties usually in increments of 0.25 depending on severity. Probably have to pay the interest as well. Of course you can try and get penalties and interest refunded but less chance if you've done something blatantly wrong.
If they find you and it looks like you have done something shady you will have penalties usually in increments of 0.25 depending on severity. Probably have to pay the interest as well. Of course you can try and get penalties and interest refunded but less chance if you've done something blatantly wrong.
Power Raid
We Exist To Win Premierships
It depends
I had one where I declared the income but put it in the wrong box in a paper lodgement tax return. A quick call from the ATO and fixed without penalty or further paperwork.
The ATO is the best govt department in the land. Competent, reasonable and fair.
I usually end up with a bill. In fact for the last few years I've been put on quarterly instalments, because one year the bill was quite large (around $6 from memory). That year a large portion of the fairly low income came in through an ABN, so was not taxed on receipt, and there was some bank interest back in the day when interest rates were not at crisis levels. I've been on instalments ever since.I know all that. But I am talking about people like me who have worked for the whole financial year, and can still come out of it with over a thousand dollars! If one more of those people tell me they have claimed dry cleaning expenses (which they are not entitled to) or travelling expenses (which they are not entitled to) I swear I am going to tell the 'audit fairy' to visit them!
I think I've only got a return once in maybe 15 years.
My deductions are basically a few donations, and that's it. There's other stuff I could claim, and probably get away with even if audited, but not strictly legally beyond about 0.1% use of home PC use for submitting timesheets. A lot of people claim their laptop/tablet/phone 100% even though they never use it for work. Presumably they will just fake a log if the auditman ever comes knocking, like so many who claim vehicle use.
Honest mistake, yes, provided you can show due care was taken.
Deliberate abuse, fine and on the extremes potential for prison. But it would need to be systemic or large for that to be pursued. Or, the government of the day just doesn't like you and gets vindictive because you once called one of their members a member.
More normally, if the ATO deems it careless, the shortfall amount + 25%.
Statements and positions that are not reasonably arguable
You may be liable to penalties for making false or misleading statements, failing to lodge returns, or taking a tax position that is not reasonably arguable.
Tax Fraud | Commonwealth Director of Public Prosecutions
We prosecute a significant number of tax fraud matters including refund fraud matters and taxation evasion frauds and schemes. We prosecute taxation fraud and regulatory offences referred by the ATO. We also prosecute serious taxation evasion schemes referred by Serious Financial Crime Taskforce...
