“The ATO pursues tax cheats to the full extent of the law to ensure people who pay their fair share of tax are not disadvantaged,” Tax Commissioner Michael D’Ascenzo said.

“The courts view these matters seriously with seven custodial sentences handed down this quarter, as well as a suspended jail sentence, good behaviour bonds and community service orders.”

“A record jail term of nine years was handed to Vanuatu based accountant Robert Agius for his role in promoting a tax minimisation scheme. He was the twenty-eighth person to be sentenced under Project Wickenby.”

“We don’t just prosecute complicated fraud schemes – this past quarter saw a range of offences including not lodging tax forms and making false and misleading statements.” Mr D’Ascenzo said.

From 1 July to 30 September 2012:

• 13 people were convicted of serious tax and superannuation related criminal offences, including two prosecuted under Project Wickenby
• 452 taxpayers were convicted of deliberately evading their tax and superannuation obligations, including 440 taxpayers who failed to lodge tax returns and activity statements despite reminders and notices demanding lodgement.

The ATO continues to improve automated detection methods and works closely with partners in government, law enforcement and industry to identify people avoiding their obligations.

“Our increasingly sophisticated information matching capabilities enable us to catch those cheating the system and protect the overall integrity,” said Mr D’Ascenzo.

“Tax dollars fund vital government services such as health care and schools and superannuation funds our retirement. Those who cheat the system cheat the community.”

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“I urge anyone worried about not meeting the deadline to call 13 28 61 as soon as possible, to discuss their situation,” said Tax Commissioner Michael D’Ascenzo.

“It is important to lodge before 31 October to avoid penalties.

“The quickest and easiest way to lodge on time is by using e-tax. Over two million people have already lodged online.

“E-tax can save you time by downloading information like your bank interest, payment summaries, health insurance details and government payments directly to your return.

“It also has built-in checks and calculators to help you complete your return, and provides you with an estimate of your tax assessment.

“Best of all, most refunds will issue in 12 business days or less.”

E-tax can be downloaded free from the ATO website .

Sometimes, simple errors can hold up tax refunds. Some common mistakes that cause delays include:

• providing incorrect date of birth, address or bank details
• not advising of a name change from a previous year’s return
• forgetting to include income such as interest from bank accounts, a previous job or income from overseas
• not completing labels you are required to, for example the ‘income test’ questions at IT1-IT7 on the tax return (this information is used to work out entitlement to payments or Child Support obligations).

If you are using a tax agent for the first time or a different tax agent to last year, you need to contact them before 31 October. It is important to check that all the information in your return is correct before lodging. Make sure that you include all income, only claim deductions or offsets you are entitled to, and accurately record your personal information.

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“Each year our ability to match data gets better, making it more likely people will be identified if they leave anything out or incorrectly report items on their tax return,” said Tax Commissioner Michael D’Ascenzo.

“We have received more than 600 million transactions from organisations this tax time to check against tax returns.

“This information comes from a range of businesses and agencies, including employers, financial institutions, share registries, and government agencies like Centrelink, who are required to report data to the ATO regularly.”

The ATO cross-checks this information after taxpayers have lodged their tax returns to help stop fraudulent claims and detect any income that has not been included.

“Last year, we wrote to 540,000 taxpayers about discrepancies in the information they reported on their tax returns. This led to 90 per cent of these returns being amended and we raised $915 million in revenue as a result,” said Mr D’Ascenzo.

If you think you have made an error or left something out, you can complete a voluntary disclosure statement that will allow you to request an amendment of your tax return.

“We are very reasonable with people who have made an honest mistake – we appreciate that can happen to anyone,” Mr D’Ascenzo said.

“However, people who deliberately attempt to defraud the tax system can face heavy fines and risk having a criminal conviction recorded.”

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“Tax cheats are trying to get an unfair advantage, adding to the burden on the majority of people who do the right thing and meet their tax obligations,” said Tax Commissioner Michael D’Ascenzo.

“Our tax and superannuation systems underpin the standard of living we enjoy in Australia and the people who attempt to defraud that system are ultimately stealing from the rest of us.”

Thirty-nine people were prosecuted for tax-related offences last financial year. Thirty-seven custodial sentences were handed down by the courts, ranging from fully suspended to nine years imprisonment. These included eight individuals who received custodial sentences under Project Wickenby.

Offences included attempting to hide income and assets overseas and individuals using stolen identities to submit false business activity statements.

There were also 1,447 individuals and 514 companies successfully prosecuted for taxation offences, such as failing to lodge returns and making false and misleading statements on tax returns and activity statements. Court-imposed sanctions included reparation orders, fines and other penalties.

“Our increasingly sophisticated information matching capabilities enable us to help protect honest taxpayers and protect the overall integrity of the tax and superannuation system,” said Mr D’Ascenzo.

“We compare tax records with more than 600 million transactions reported to us each year from financial institutions and other organisations, both in Australia and overseas, to gain a very detailed picture of people’s financial dealings.

“The message is clear. If you attempt to cheat the honest taxpayer community you will be found out and brought to justice.”

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MoneySmart Week is an Australian Government Financial Literacy Board initiative led by Paul Clitheroe AM and supported by more than 100 organisations from the business, community and government sectors.

“The aim is to encourage all Australians, including young people, to take a closer look at their everyday money management,” said Tax Commissioner Michael D’Ascenzo.

“When it comes to money, knowing what support and services are available, including through the ATO, can make all the difference.”

Understanding money can help young people and their friends and families make sound financial decisions, manage financial stress, work towards meeting their goals and secure their financial wellbeing.

As part of the week, the ATO is encouraging its employees to do the MoneySmart money health check which will provide simple steps, tips and an action plan to improve personal finances. We are also promoting the week and our leveraged tax and super messages to young people through twitter.

“The reality is money plays a major role in our lives – it can affect our quality of life, sense of security and impact what opportunities we choose to pursue, said Mr D’Ascenzo.

“So think about making the most out of MoneySmart Week and your tax and super – a few simple steps could make a big difference to your finances.”

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Developed by the Australian Taxation Office (ATO), the new Digital Curriculum Resource, Tax, Super + You was launched today at MacGregor State High School in Brisbane.

The new resource helps students gain a better understanding of how the taxation system works to support the community and how superannuation can provide for their retirement income.

“This is a fantastic new online resource that teachers will be able to use in schools to help explain to their students how our taxation system works,” Mr Bradbury said.

“It will also help to improve financial literacy, with interactive scenarios that will help give students the skills they need to better manage their tax and super when they leave school.”

Taxation Commissioner Michael D’Ascenzo said the ATO had conducted extensive consultation with students and teachers in developing the new resources and had trialled the package in a number of schools around Australia, including MacGregor State High School.

“In developing Tax, Super + You we wanted to ensure it would be able to be integrated as easily as possible into any class curriculum,” Mr D’Ascenzo said.

“It includes suggested lesson plans to help teachers when needed but also can be used as a self-paced learning tool, lessening the demand on teachers.”

Local Federal Member for Moreton, Graham Perrett, said that local students would benefit from access to these new digital curriculum resources.

“Tax, Super + You empowers young people to take control of their financial future and I look forward to seeing the students from MacGregor State High School learn more about our taxation and superannuation system and how it benefits them and their local community,” Mr Perrett said.

11 July 2012

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Speaking at the release of the ATO’s third quarter update of prosecution results, Tax Commissioner Michael D’Ascenzo said the figures show that there are significant risks and consequences for people who do not properly fulfil their legal and civic responsibilities in relation to tax and superannuation.

“The year-to-date results to 31 March reveal that the ATO successfully prosecuted 1,106 individuals and 400 companies for tax and superannuation offences,” Mr D’Ascenzo said.

“We have a range of measures in place to ensure we detect and deal with those who evade their obligations. This includes information sharing and working with other government agencies, and also with overseas counterparts.

“The ATO pursues tax cheats to the full extent of the law to ensure honest taxpayers have their interests looked after. Australians don’t want to face an unfair burden when dishonest people avoid their tax obligations, and they expect the ATO to provide a level playing field.”

The prosecution results show that the 1,106 individuals and 400 companies successfully prosecuted comprised:

• Thirty people prosecuted and convicted of serious tax crime offences, with sentences ranging from two months up to nine years. Five of these convictions occurred under Project Wickenby. These serious convictions cover a range of offences including attempting to dishonestly obtain a financial advantage by deception, dealing with the proceeds of crime, and illegally seeking access to superannuation funds.
• 1,076 individuals and 400 companies were successfully prosecuted for other tax offences.
• Of these, 916 individuals and 332 companies had a formal conviction recorded against them. Offences included failing to lodge a tax return, providing false and misleading information, and receiving a fee for preparing an income tax return when not being a registered tax agent.

With the quarter’s figures largely on trend, Mr D’Ascenzo said it was important to note the ATO’s commitment to encouraging willing and proper participation in the tax and superannuation systems.

“Prosecution is often a last resort, but it’s there to protect the vast majority of taxpayers who do the right thing from being disadvantaged by those that don’t,” Mr D’Ascenzo added.

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