The terms tax fraud, tax evasion and tax avoidance or minimisation are often used interchangeably, but there are important differences between the three categories of conduct.

Tax fraud generally involves making positive representations (statements) to the Australian Taxation Office (ATO) which are false or misleading in material (important) respects, in circumstances where a person or company knows or should know the information is false, and is intended to lead to a gain – such as the receipt of payments to which the person or company is not entitled.

Tax evasion generally involves the less-serious conduct of under-reporting income or over-reporting expenditure, with a view to avoiding some of the tax which the person or company would otherwise be required to pay.

Tax avoidance or minimisation involves the use of lawful methods to reduce tax liability, and does not amount to an offence.

The maximum penalties for tax fraud and evasion offences in Australia range from 12 months to 10 years imprisonment.

If you are being reviewed or audited, or have been charges with a tax-related offence, it is crucial to engage the services of tax lawyers who have a comprehensive knowledge of the laws in the area, as well as the guidelines, practices and procedures used by the ATO in making determinations regarding whether to prosecute and, if prosecuted, when to withdraw and downgrade charges.

The team at Waterhouse Lawyers is very experienced in representing clients who are suspected or charged with tax fraud and tax evasion-related offences, and will be able to provide you with expert advice and formidable representation throughout the ordeal.