Requirement to Keep Proper Records
What is the legal definition of Requirement to Keep Proper Records?Section 3 of the Taxation Administration Act 1997 (Cth) provides the following definitions:
Tax liability means a liability to pay tax.
- A documentary record;
- A record made by an electronic, electromagnetic, photographic or optical process; or
- Any other kind of record.
Examples of Requirement to Keep Proper Records
- Failing to retain income records
- Failing to retain liability records
- Failing to keep records of assets
LegislationThe legislation for this offence can be found on section 50 of Taxation Administration Act 1997.
Elements of the offenceThe Prosecution must satisfy the Court beyond reasonable doubt that the corporation or person did not retain all of the documents necessary for assessing tax liability.
“Can the Prosecution prove that you did not retain your financial records?”
 The Oxford English Dictionary.
You should call us and discuss your case if you have been charged. Deciding on whether to plead guilty or not has important implications for you and should be made after proper discussions with a criminal lawyer.
Questions in cases like this
- Did you retain the records?
- What was your reason for not retaining your records?
- Did you know your accountant was going to destroy the records?
- Were the records lost or misplaced?
The maximum penalty for (s50 of the Taxation Administration Act 1997) is a fine of 500 penalty units in the case of a body corporate, or 100 penalty units in any other case.