Tax Evasion

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.

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Bill authored this content and last revised it for accuracy on 7 August 2026.

What is the offence of Tax Evasion?

Tax Evasion under section 61 of the Taxation Administration Act 1997 criminalises intentionally avoiding tax obligations through deliberate behaviour. It targets conduct where a person consciously seeks to escape paying tax that is lawfully due.

Key points

Elements: evaded or attempted to evade paying tax, by a deliberate act or omission
Conduct: deliberate action or deliberate inaction designed to avoid paying tax
Court: usually dealt with in the Magistrates’ Court (may be dealt with in higher courts depending on the amount)

The maximum penalty for Tax Evasion is A fine of 1,000 penalty units ($209,100.00 as at 2026–27) in the case of a body corporate. In any other case, the court may impose a maximum of 200 penalty units ($41,820.00 as at 2026–27) or imprisonment for 2 years, or both.

Common defences may include a factual dispute, or a lack of intent.

The offence of Tax Evasion is found in section 61 of the Taxation Administration Act 1997. It is a criminal offence for a person to deliberately avoid paying tax.

Have you been accused of Tax Evasion?

ATO interview

It is important that you receive legal advice before speaking to the ATO in relation to allegations of tax evasion. One of our lawyers can assist you by running you through with what you can expect during an interview and what your obligations are if they compel you to produce financial documents. Our lawyers are proactive in their approach and can engage forensic accountants to assist with your case.

If the ATO want to speak with you about an allegation of Tax Evasion, speak with one of our experienced lawyers before you are interviewed. It’s important to remember that whatever you say in an interview can be used against you later in court.

Pleading not guilty

Our firm consists of experienced criminal lawyers and in-house counsel who can develop a strategy to contest your charge of Tax Evasion.

One of our experienced lawyers will consider the unique circumstances of your case. We’ll look for gaps in the brief of evidence against you and look for evidence that may assist in defending you in court. Our lawyers will consider your personal circumstances and work hard to protect your interests.

We believe it is very important for our clients to understand what they are facing. Preparing a case strategy early will increase the chances of this charge being withdrawn or leading to an acquittal.

Pleading guilty

Contact our firm if you are pleading guilty to a charge of Tax Evasion. Having an experienced criminal lawyer present your plea of guilty will help you get the best outcome. We will explain your personal circumstances to the sentencing Court and tender expert reports and character references to help mitigate the offending.

Which court will the case be heard in?

This case will usually be dealt with in the Magistrates’ Court – although it may be dealt with in the higher courts depending on the amount.

What is the legal definition of Tax Evasion?

A person must not, by a deliberate act or omission, evade or attempt to evade tax.

Examples of Tax Evasion

You are required to report your earnings to the government and pay tax. You are offered a cash-in-hand job and decide not to report your earnings, and not to pay income tax.

Legislation

The legislation for this offence can be found on section 61 of Taxation Administration Act 1997 (‘the Act’).

Elements of the offence

To prove this charge, the Police must prove the following beyond reasonable doubt:

That the accused evaded or attempted to evade paying tax…
‘Tax evasion’ is not defined in the Act, so the court would apply the ordinary meaning of ‘evade’. To evade paying tax means to avoid or dodge paying tax.¹ Whether or not the accused avoided or dodged paying tax in accordance with the Act will be a matter of fact.
By a deliberate act or omission.
In order to be liable under this section, the accused needs to evade tax by deliberate act or omission. Mere inadvertence or carelessness would not be sufficient – there needs to be deliberateness on behalf of the accused.

Did you deliberately avoid paying your tax?

Defences

Defences to this charge can include a factual dispute or a lack of intent.

Questions in cases like this

Did you avoid paying your tax?
Was this avoidance deliberate?

You should ring us and discuss your case if you have been charged. Deciding on whether to plead guilty or not has significant implications for you and should be made after proper discussions with a criminal lawyer.

Maximum penalty for section 61 of the Taxation Administration Act 1997

The maximum penalty for Tax Evasion (s61 of the Taxation Administration Act 1997) is a fine of 1,000 penalty units ($209,100.00 as at 2026–27) in the case of a body corporate. In any other case, the court may impose a maximum of 200 penalty units ($41,820.00 as at 2026–27) or imprisonment for 2 years, or both.

Other important resources

FAQ About Tax Evasion

What does “deliberate” mean in a tax evasion allegation?

A deliberate act or omission requires conscious decision-making. Simple mistakes, carelessness or inadvertence are not sufficient. The focus is on whether the person intentionally avoided paying tax rather than making an error or oversight in meeting their tax obligations.

How do courts determine whether someone has evaded tax?

Because “evade” is not specifically defined, it carries its ordinary meaning of avoiding or dodging payment. Whether a person avoided paying tax is treated as a question of fact, assessed in light of the surrounding circumstances and the person’s conduct.

Can failing to declare cash income lead to a tax evasion charge?

Accepting cash-in-hand work and deciding not to report those earnings for tax purposes is an example of conduct that may amount to tax evasion. The critical issue is whether the failure to declare income was a deliberate decision to avoid paying tax.

What issues are commonly disputed in tax evasion cases?

Disputes commonly centre on whether tax was in fact avoided and whether any avoidance was deliberate. These factual questions often determine whether the conduct falls within section 61.

Can statements made to the ATO be used in court?

Statements made during an ATO interview can later be used in court proceedings. There are also circumstances where a person may be required to produce financial documents as part of an investigation into alleged tax evasion.

Does the court level depend on the amount involved?

Tax evasion charges are usually dealt with in the Magistrates’ Court. However, matters may proceed to higher courts depending on the amount involved in the alleged evasion.

_{[1] https://www.merriam-webster.com/dictionary/evasion}

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