“DON’T dodge when you lodge” is the message from the Australian Taxation Office (ATO) this year to serve as a reminder to taxpayers of the serious consequences of lodging false or misleading claims.
Assistant Commissioner Kath Anderson said while most Australians wanted to do the right thing, some refuse to pay their share – or pay at all.
“In the first instance we always try to help and educate taxpayers about how to get their tax right,” Ms Anderson said.
“Unfortunately in some cases people don’t respond or deliberately make false statements to avoid paying the right amount of tax and we have to pursue this.”
Ms Anderson said the ATO used sophisticated systems and analytics to ensure wrongdoing would never fly under the radar.
If a claim raises a red flag in the system, auditors will investigate further.
“In 2015–16 we conducted around 450,000 reviews and audits, resulting in adjustments of nearly $1 billion in income tax, and prosecuted over 1,300 taxpayers,” Ms Anderson said.
“Criminal investigations and prosecution are a last resort and not something we take lightly.
“However, Australians expect us to make sure nobody gets a free ride and we are prepared to use all the avenues available to us to protect the integrity of the tax system.
“Our message to all taxpayers is that the ATO takes firm action against those who actively choose to ignore their obligations or try to game the system.”
Ms Anderson said the ATO was aware some people were willing to take risks and falsely claim work-related expenses.
She said the consequences can be costly for those found to be doing the wrong thing.
“In the worst cases a penalty can be up to 95pc of the tax shortfall amount.”
To find out more about what deductions you can legitimately claim at tax time, visit ato.gov.au/deductions.
