Appendix 12: Fraud or evasion exception
Information about fraud or evasion assessments conducted in 2020–21 is shown in Table 6.28. In 2020–21, there were 74 taxpayers subject to a fraud or evasion assessment. This represents around 0.04% of taxpayers subject to an audit related assessment. Of the 74 taxpayers, 70 incurred an additional penalty. Penalty decisions are yet to be made for three taxpayers, and for one taxpayer penalties were not applied.
TABLE 6.28 Fraud or evasion assessments by client experience, 2020–21
Client experience | Number of taxpayers subject to an audit related assessment | Number of taxpayers subject to a fraud or evasion assessment(a) | Taxpayers subject to a fraud or evasion assessment: % of taxpayers subject to an audit related assessment | Taxpayers subject to a fraud or evasion assessment: Number of taxpayers with an additional penalty(b) |
|---|---|---|---|---|
Individuals | 106,736 | 6 | 0.01 | 6 |
Small business | 52,280 | 34 | 0.07 | 34 |
Privately owned and wealthy groups | 8,920 | 30 | 0.34 | 26 |
Public and international businesses | 791 | 4 | 0.51 | 4 |
Not-for-profit organisations | 485 | 0 | 0 | 0 |
Self-managed superannuation funds | 11 | 0 | 0 | 0 |
APRA-regulated superannuation funds | 86 | 0 | 0 | 0 |
TOTAL | 169,309 | 74 | 0.04 | 70 |
Notes
(a) The tax law fraud or evasion exception to limited periods of review found within the income tax, superannuation and GST Acts allows that, if in the Commissioner’s opinion there is fraud or evasion, the Commissioner is not constrained and may amend an assessment at any time.
(b) The tax law penalty provisions of Part 4-25 in Schedule 1 to the Taxation Administration Act 1953 operate independently of the fraud or evasion exception. The penalty provisions impose administrative penalties for conduct such as: making a false or misleading statement or taking a position that is not reasonably arguable; failing to lodge a return or statement on time; failing to withhold amounts as required under the PAYG withholding system; failing to meet other tax obligations.
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