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Failing to lodge tax returns and criminal charges

It is the time of year when tax returns for the tax year ending 30 June 2011 are due to be lodged with the Australian Taxation Office (ATO). Not...

Jamie McLachlan

It is the time of year when tax returns for the tax year ending 30 June 2011 are due to be lodged with the Australian Taxation Office (ATO). Not everyone is required to lodge a tax return but for those that are it must be lodged with the ATO by 31 October 2011. If a person is registered as a client with a tax agent it may be lodged later. It is estimated that almost 80 per cent of Australian tax payers use a tax agent or accountant to complete their return.

In order to complete a return a person will need to have a tax file number as well as their financial records for the tax year. Individuals may gain some assistance to complete their return from the TaxPack – which is a booklet published by the ATO.

If a return is not lodged on time a penalty may be imposed by the ATO. This is currently $550.

Failure to lodge a return can result in criminal charges, a criminal record and even a jail sentence.

The maximum penalties for not filing a return after the Commissioner of Taxation has directed that a return be filed are significant. For a first offence the maximum penalty is a fine of $2,200 and for a second offence a fine of $4,400. If the person has previously been convicted of two relevant offences the maximum penalty is a jail term and a fine of $5,500.

For further information see our page on Failure to Lodge a Tax Return.

Photo by Nataliya Vaitkevich