Failure to Comply with Requirements Under Taxation Law

– section 8C of the Taxation Administration Act 1953
Failure to Comply with Requirements Under Taxation Law
Failure to Comply with Requirements Under Taxation Law is when someone refuses or fails to provide an approved form or any information to the Commissioner. Or to give information to the Commissioner in the way in which it is required.

Examples of Failure to Comply with Requirements Under Taxation Law
  • Someone failed to give information to the Commission which was required in a hearing.
  • Someone refused to give the Commission their tax file number.
  • Someone failed to attend a hearing before the Commission.
What are some of the possible defences to a charge of Failure to Comply with Requirements Under Taxation Law?
  • You did not fail to comply with any requirements under Taxation Law.
  • There is a good reason why you failed to comply with any requirements under Taxation Law.

There are other possible defences, depending on the circumstances surrounding the alleged offending. Each matter is unique and requires an individual approach and strategy.

Questions in cases like this
  • Have you failed to provide anything to the Commissioner?

Maximum penalty and Court that deals with this charge

Section 8E of the Taxation Administration Act 1953 states that the maximum penalty for this offence is a fine not exceeding 20 penalty units for a first offence and 40 penalty units for a subsequent offence. This charge is generally heard in the Magistrates’ Court.

“Can the Prosecution prove that you failed to comply with your requirements on time?”
What is the legal definition of Failure to Comply with Requirements Under Taxation Law?

A person failed to attend before the Commissioner. Or refused or failed to give any information or document or lodge an instrument with the Commissioner. Or to notify the Commissioner of anything relevant. Or to comply with any other requirement under the Act.

Legislation

The section that covers this offence is section 8C of the Taxation Administration Act 1953.1

Elements of the offence

The court may find the accused guilty of this offence if the following are proven by the prosecution:

  • The accused, when and as required under or pursuant to a taxation law to do any of the below actions, refused or failed to:
    • to give any information or document to the Commissioner or another person; or
    • to give information to the Commissioner in the manner in which it is required under a taxation law to be given; or
    • to lodge an instrument with the Commissioner or another person for assessment; or
    • to notify the Commissioner or another person of a matter or thing; or
    • to produce a book, paper, record or other document to the Commissioner or another person; or
    • to attend before the Commissioner or another person; or
    • to apply for registration or cancellation of registration under the A New Tax System (Goods and Services Tax) Act 1999; or
    • to comply with a requirement under subsection 45A(2) of the Product Grants and Benefits Administration Act 2000; or
    • to comply with subsection 82-10F(4) of the Income Tax (Transitional Provisions) Act 1997.

What can you be sentenced to for this charge?

You will most likely get a fine if you are found guilty of this offence.

Other Important Resources

 


[1] Taxation Administration Act 1953 – Section 8C

(1) A person who refuses or fails, when and as required under or pursuant to a taxation law to do so:
(a) to give any information or document to the Commissioner or another person; or
(aa) to give information to the Commissioner in the manner in which it is required under a taxation law to be given; or
(b) to lodge an instrument with the Commissioner or another person for assessment; or
(d) to notify the Commissioner or another person of a matter or thing; or
(e) to produce a book, paper, record or other document to the Commissioner or another person; or
(f) to attend before the Commissioner or another person; or
(g) to apply for registration or cancellation of registration under the A New Tax System (Goods and Services Tax) Act 1999 ; or
(h) to comply with a requirement under subsection 45A(2) of the Product Grants and Benefits Administration Act 2000 ; or
(i) to comply with subsection 82-10F(4) of the Income Tax (Transitional Provisions) Act 1997 ;
commits an offence.
(1A) An offence under subsection (1) is an offence of absolute liability.
(1B) Subsection (1) does not apply to the extent that the person is not capable of complying with the relevant paragraph.
(2) For the purposes of paragraphs (1)(a) and (d), a person shall not be taken to have refused or failed to furnish information to the Commissioner or another person, or to notify the Commissioner or another person of a matter or thing, merely because the person has refused or failed to quote the person’s tax file number to the Commissioner or other person.