Charging expenses to the business, which have not been legitimately incurred in producing the business income. Tracing this is almost impossible. A similar situation exists for builders who are also building their own homes. Where taxpayers have not made full and true disclosures of all the facts and it is found that taxes have been underpaid due to fraud or blatant evasion, then the Commissioner can amend the taxpayers tax assessment at any time, and the onus of proving that there is no evasion is on the taxpayer. We must also stress here that evasion can be a criminal offence resulting in a prison sentence, in addition to very high penalties.
Evasion is fraudulent intention to avoid the payment of tax.
Fraud is taken to mean the absence of genuine belief in the truth of a statement or assuming a reckless or careless stance as to its truth or falsity. Wilful incorrect claims for expenditure. Wilful understating of income. Failure to reveal all relevant and material facts in a tax matter. Telstra is not a qualified adviser and this information has been prepared without taking into account any individual circumstances.