If you know or suspect phoenix, tax evasion or shadow economy activity, report it by: completing the tip-off form – also available in the contact us section of the ATO app. phoning the ATO tip-off hotline on 1800 060 062.
Tax whistleblowersOpens in a new window have legal protections when they disclose tax avoidance behaviour and other tax issues to us about an entity they are, or have been, in a relationship with. You can remain anonymous. The online form takes about 15 minutes to complete and you must complete it in one session.
Further investigation into tip-offs is carried out by specialised teams and taskforces within the ATO, such as: Black Economy Standing Taskforce. Illicit Tobacco Taskforce. Serious Financial Crime Taskforce.
They might request lodgements or information you have made with the ATO that is the subject of its investigations, including financial statements, schedules, agreements/contracts, tax reconciliations and other source documents.
On your tax return, including all capital gains events
If you didn't declare the sale of shares or rental property on your tax return, the ATO might flag your return for a review. Data matching with other government agencies and financial institutions is possible because of ATO's sophisticated technology.
The ATO can, and will, check your bank accounts, cross reference payments against an ABN and confirm missing income from your tax return.
Not reporting your full income – The ATO looks at your full income, which may include bank interest, dividends, trust distributions, and other sources. You need to account for all of your income on your tax return, not just your salary or wage. Fail to do so, and you could trigger an audit.
two years for most individuals and small businesses. two years for most medium businesses (see note 2) four years for all other taxpayers (see note 3).
Most online returns process within 2 weeks (14 days), however if we need to manually process it, it may take up to 30 calendar days.
Your employer may pay your wages to you in cash (or with a cash cheque), rather than into your bank account. Paying wages in cash is legal and may be more convenient.
Yes, imprisonment is a possible penalty for tax evasion. However, the CDPP and ATO will take into consideration the severity of the offence. For less severe offences, penalties include discharge without conviction, fines, good behaviour bonds and community correction orders.
Whistleblowers under these systems can receive rewards of between 15 and 30 per cent of the collected proceeds (including penalties, interest, additions to tax and additional amounts) if the unpaid tax exceeds USD2 million.
Insolvency practitioners or liquidators who are empowered to wind up a taxpayer's financial affairs can access the taxpayer's records. Subpoenaing the ATO.
Under the Tax Administration Act 1953, we prosecute a range of summary offences, including: failing to lodge returns or keep records. making false or misleading statements.
If you think someone may be avoiding paying state taxes or has claimed a grant in Queensland that they are not entitled to, you can report it anonymously and confidentially—you do not have to give us your name.
If you use your former home to produce income (for example, you rent it out or make it available for rent), you can choose to treat it as your main residence for up to 6 years after you stop living in it. This is sometimes called the '6-year rule'. You can choose when to stop the period covered by your choice.
The most serious tax fraud crimes carry a maximum penalty of up to 10 years imprisonment. Of course, this is the worst-case scenario. At the ATO's discretion, they may decide your case is not serious enough for federal court and instead may impose an administrative penalty (a fine).
There are certain anomalies in a tax return that can 'trigger' a tax audit, but each year the ATO chooses a number of specific areas of focus, and will often conduct random audits on tax returns these show up in.
Who gets audited by the IRS the most? In terms of income levels, the IRS in recent years has audited taxpayers with incomes below $25,000 and above $500,000 at higher-than-average rates, according to government data.
IRS matching program
Failing to report all your income is one of the easiest ways to increase your odds of getting audited. The IRS receives a copy of the tax forms you receive, including Forms 1099, W-2, K-1, and others and compares those amounts with the amounts you include on your tax return.
You must submit a TTR to AUSTRAC for each individual cash transaction of A$10,000 or more.
Impose a freezing order – for example, on your bank accounts. That is, without notice the ATO can freeze and then if required strip your accounts, particularly where they believe you have alternative sources of income. This freezing order cannot be initiated by the ATO but must be granted by a court.
If you are in debt to the ATO, you may be issued with a garnishee notice on your bank accounts with a demand to pay the ATO within a specified amount of time. Failure to do so can result in your bank accounts being frozen and a suspension on your trading accounts.