Yahoo Finance Tax time: 2.4 million Aussies face ATO punishment
Aussies who lie on their tax return could face serious repercussions.
Millions of Aussies have admitted to lying on their tax return, according to new research.
One in 10 (12 per cent) Aussies revealed they had, at some point, lied on their tax return, the Finder survey found. That’s equivalent to 2.4 million Aussies being dishonest about their work expenses or the income they earn.
The research found 4 per cent repeatedly lied on their tax return each year, while the same amount (4 per cent) only lied occasionally.
Also read: ATO hit list: What the tax office is cracking down on this year
Also read: 4 tips to maximise your tax return before June 30
Finder money expert Alison Banney said, as tax season rolled around, it came with a responsibility to accurately report on your finances for the past 12 months.
“Doing your own taxes can seem complex and overwhelming, with many unsure of what deductions to claim for and how to go about reporting on financial gains and losses,” Banney said.
“Add cost of living to the mix and many will be attempting to find ways to lower the amount they have to pay this year.”
Who is lying the most?
Almost one in 10 Aussies admitted they didn’t report additional income made through side hustles, while 4 per cent were untruthful about their investments.
The younger generations are more prone to lying on their tax return, with 16 per cent of Gen Z and 15 per cent of Gen Y admitting to being untruthful about their finances, compared to Gen X and Baby Boomers (both 10 per cent).
The data found those earning above $100,000 a year were more tempted to lie (14 per cent) than those earning below $100,000 a year (12 per cent).
Punishment for lying on a tax return
Banney said while it might seem tempting to lie on your tax return, it came with serious consequences.
“Lodging inaccurate information with the tax office is a criminal offence which can, in extreme cases, call for up to 10 years’ imprisonment or hefty fines,” she said.
“While most people aren’t intentionally dishonest when submitting their return, it’s important to be diligent in double-checking you’re not making a costly mistake.
“The risks and consequences far outweigh any short-term gains made.”
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