In Australia, more than two million taxpayers could face hefty fines if they are caught lying on their tax return. This is as the Australian Tax Office (ATO) cracks down on discrepancies in documents as it looks to close the $8.4 billion tax gap.
According to research undertaken by comparison website Finder, 12 percent of Aussies – approximately 2.4 million – have already admitted to previously lying on their tax return.
One of the biggest areas for untruthful claims comes from those falsifying information about work-related deductions. These deductions are proposed to help reimburse costs incurred by employees for purchasing tools, equipment and clothing, often associated with a job. It is important to note that these reimbursements are not intended to make a profit nor to be utilised as a tax minimisation scheme.
“Submitting incorrect information to the tax office constitutes a criminal offense which may lead to severe punishments such as imprisonment for up to 10 years or hefty fines. Even though most people have no intention of being dishonest in their returns, it is essential to take extra caution to make sure you don’t make an expensive mistake,” said Alison Banney, money expert at Finder.
Of the survey’s more than 1000 respondents, 4 per cent indicated that they consistently lie when filing taxes, and another 4 per cent admitted they sometimes do. Of the younger generations surveyed, a significant 16 per cent of Gen Z and 15 per cent of Gen Y stated they were dishonest, compared to 10 per cent each from Gen X and Baby Boomers.
14 per cent of people earning more than $100,000 were more likely to lie than 12 per cent of people making under $100,000. Seven per cent have said they didn’t report additional income from side hustles, and 4 per cent reported that they were dishonest about their investments.
