Please advise if you would like us to provide you with details of the requirements to keep records and receipts to substantiate any deductions claimed for work, care and travel expenses. Where claims have been made in your return for any of these expenses, you need to clearly understand the substantiation requirements before signing the Declaration included on the front cover of your return. You should resolve any doubts you have before signing the declaration.
If an answer to a question or any statement made in an income tax return, or an attached schedule, appears to be incorrect, incomplete or misleading, please provide the information needed to amend the return.
Penalties may be imposed in an assessment for an incorrect return under the Income Tax Assessment Act 1936 and/or the Income Tax Assessment Act 1997 for up to double the amount of additional income tax subsequently assessed. These penalties may apply even if the error was made innocently. Alternatively, in more serious case, prosecutions may be instituted under the Taxation Administration Act 1953 and fines imposed by the Courts, if convicted.
These considerations assume greater significance now that the Australian Taxation Office is placing increasing reliance upon self-assessment by taxpayers. The issue and payment of assessment does not imply the tax liability for the year has been finalised. Consequently, a greater onus is placed on taxpayers to ensure that income tax returns are accurately prepared and contain no misleading statements or information. All taxpayers may expect some attention from the Australian Taxation Office about their past taxation affairs. The penalty for any errors and omissions detected at that time may assume large proportions, if several years have passed since the income tax return was lodged and assessed.