Author: Bill Doogue
Practice area: tax offences
Bill is a founding Director of Doogue + George, ranked by Doyle's Guide as a Preeminent Criminal Defence Lawyer in Victoria (2026) and an LIV Accredited Criminal Law Specialist since 1998 with over 30 years of experience in complex criminal and corporate matters. His depth of experience in this area means clients receive accurate, considered advice.
View full profile →Bill authored this content and last revised it for accuracy on 6 August 2026.
What is the offence of Requirement to Keep Proper Records?
This offence applies where a person or body corporate fails to keep records needed for the proper assessment of tax liability. It is set out in section 50 of the Taxation Administration Act 1997 (Victoria).
Key points
- Elements: Not retaining all documents necessary for assessing tax liability (proved beyond reasonable doubt)
- Typical conduct: Failing to retain income records, liability records, or records of assets
- Where it’s heard: These matters are generally heard in the Magistrates’ Court
The maximum penalty for Requirement to Keep Proper Records is a fine of 500 penalty units ($104,550.00 as at 2026–27) in the case of a body corporate, or 100 penalty units ($20,910.00 as at 2026–27) in any other case.
Common defences may include a factual dispute (for example, whether the records were retained, or whether they were lost or misplaced).
Have you been accused of Requirement to Keep Proper Records?
Interview
Did you know that the investigator interviewing you will likely have all the evidence they need to charge you with failing to Keep Proper Records? The interview is designed to elicit admissions from you or gather information from you to bolster their case. The investigator is not trying to work out what happened or asking you questions to ‘get to the bottom of it’.
You should call us for advice regarding the interview process and we can advise you on what to expect.
Pleading Not Guilty
With complex matters that involve large financial penalties it is important that a strong team works together to test all the elements of failing to Keep Proper Records. You may have a reasonable defence that could lead to an acquittal. Our lawyers can help you fight the case against you.
Pleading Guilty
The financial penalties for a charge of failing to Keep Proper Records can be extremely large for individuals and/or corporations. It is important that if you are pleading guilty to such a charge that all relevant mitigatory material is placed before the Court to ensure you receive the fairest possible sentence.
Our lawyers can guide you through the plea process and advise you of all the things you should do before Court to get the best outcome.
Which court will the case be heard in?
These types of matters are generally heard in the Magistrates’ Court.
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’
Tax liability means a liability to pay tax.
‘Records’
Record means:
- A documentary record;
- A record made by an electronic, electromagnetic, photographic or optical process; or
- Any other kind of record.
The ordinary English definition of the word ‘retain’ is to ‘continue to have (something); keep possession of’.1
Examples of Requirement to Keep Proper Records
- Failing to retain income records
- Failing to retain liability records
- Failing to keep records of assets
Legislation
The legislation for this offence can be found on section 50 of Taxation Administration Act 1997.
Elements of the offence
The 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?
Defences
A company or person charged with this offence can rely on a factual dispute to defend this charge.
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?
Maximum penalty for section 50 of the Taxation Administration Act 1997
The maximum penalty for (s50 of the Taxation Administration Act 1997) is a fine of 500 penalty units ($104,550.00 as at 2026–27) in the case of a body corporate, or 100 penalty units ($20,910.00 as at 2026–27) in any other case.
Other important resources
FAQ About Requirement to keep proper records
What is the investigator interview designed to achieve in a “keep proper records” case?
Are investigators trying to “get to the bottom of it” during the interview?
What questions commonly come up in cases about failing to retain records?
What does it mean if the records were “lost or misplaced”?
Why are these matters described as involving large financial penalties?
[1] The Oxford English Dictionary.
