If you have deliberately evaded the Victorian taxation system, we will apply the full force of the law in recovering the tax and penalising your conduct. This includes using our coercive powers to obtain information from you and/or third parties.
If we determine that your conduct amounted to an intentional disregard of the law, we will assess all past liabilities no matter when they occurred and apply the maximum rate of penalties, which could be as high as 90%. This will be in addition to interest that you will be required to pay on your tax default.
Similarly, during the investigation process, if you fail to cooperate by not providing all relevant information in a timely manner or provide false or misleading information, a higher rate of penalties than would otherwise apply may be imposed in relation to your tax default.
If you do not provide requested information, we may issue an assessment on an estimated basis. In such a case, the onus will be on you to disprove the liability through the objection process which will require full disclosure of all relevant information.
The requirement to pay an assessment will not be removed on the lodgement of an objection and interest will accrue while an assessment remains unpaid. To safeguard the collection of the tax, in certain cases we may place a charge on property and/or commence winding-up or recovery proceedings even if an objection has been lodged.
Where false or misleading information is provided, we will review the circumstances of the matter to determine whether you should be prosecuted for an offence under the relevant law, including the Taxation Administration Act 1997.
