Report Tax Evasion When Someone Has Deliberately And Dishonestly Evaded Tax

Tax evasion has an impact on our tax system. It causes a significant loss of revenue to the Australian community that could be used for funding improvements in health, education, and other government programs.

Tax evasion also allows some businesses to gain an unfair advantage in a competitive market and some individuals to not meet their tax obligations. As a result, the burden of tax not paid by those who choose to evade tax, falls on other taxpayers.

Examples of tax evasion are:
failing to declare assessable income claiming deductions for expenses that were not incurred or are not legally deductible
claiming input credits for goods that GST has not been paid on failing to pay us the PAYG instalments that have been deducted from a payment, for example tax taken out of a worker’s wages, and failing to lodge tax returns in an attempt to avoid payment.

The following are some signs that a person or business may be evading tax:not being registered for GST, despite clearly exceeding the threshold not charging GST at the correct rate not wanting to issue a receipt providing false invoices using a false business name, address, Australian business number (ABN) or tax file number (TFN) keeping two sets of accounts, and not providing staff with payment summaries (previously known as group certificates).

However, not all people or businesses who show these signs are deliberately and dishonestly evading tax. By telling us what you know, we can investigate the matter to find any supporting evidence of tax evasion.

For example, getting paid in cash is not illegal but failing to declare income or account for GST is. Failing to supply a tax invoice may not be tax evasion, however if you request one in writing it must be provided within 28 days. A tax invoice may be necessary for a refund or to remedy unsatisfactory work. If you do not receive a tax invoice 28 days after asking for one you can contact us for help.

Underpaying employees is not tax evasion. These complaints should be referred to the relevant Federal or State Government wages line.