Tax Evasion
Criminal Law
Tax evasion is the intentional or reckless failure to comply with tax laws. It should not be confused with tax avoidance which is legal and concerns minimalising your tax bill legally.
Sections 134.1(1), 134.2(1) and 135.4(3) of the Criminal Code Act (the Act) are the main sections that cover tax evasion. All the offences carry a maximum penalty of 10 years in prison.
Defences
Honest and reasonable mistake of fact
A defence of honest and reasonable mistake of fact may be raised where a mistake was made. This could be a book-keeping error or a misunderstanding. The mistake would need to be considered reasonable in the circumstances. If you were carelessness, recklessness or lazy, you will be unable to use this defence.
Duress
If you were forced to commit the offence under a serious threat which was so serious as to justify the conduct, and there was no reasonable way to avoid the offence, you can use the defence of duress.
Guilty of tax evasion
The severity of the offence and the amount involved will determine what penalty you will receive. You could receive one of the following:
- Discharge Without Conviction
- Fine
- Good behaviour bonds
- Community Correction Order
- Intensive Correction Orders
- Prison
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Criminal Law
Contact Us
Clarence Chambers
Level 11, 65 York Street
Sydney NSW 2000
(02) 91599050