What is a Tax Offence?
Tax avoidance is a scheme or arrangement where a taxpayer enters into a transaction that complies with the letter of the law but has the effect of obtaining a tax benefit. Avoidance does not involve active or passive fault on the part of the taxpayer.
Tax evasion is the illegal non-payment of tax that would be properly payable if a full and true disclosure of assessable income and allowable deductions had been made. Tax evasion involves a breach of the law or the exploitation of a loophole in the law for the specific purpose of the evading tax. A person must not, by a deliberate act or omission, evade or attempt to evade tax.
Penalty: 1000 penalty units in the case of a body corporate; 200 penalty units or imprisonment for 2 years or both in any other case.