Tax fraud and tax evasion are serious matters that carry heavy consequences, including criminal prosecution and imprisonment. Fraud requires knowledge of the wrongdoing whilst evasion simply requires “a blameworthy act”. Common causes for the ATO to target a taxpayer is failing to disclose income, deliberately overstating deductions, and dealing in the cash economy (including AUSTRAC detection). In each case, when fraud or evasion is claimed by the ATO, the statutory time limits for amendment (2-4 years) are removed, meaning the ATO can go back in time as far as it sees fit to examine your tax affairs.  A careful analysis of your position is required to amend your returns and remove any errors as soon as possible. In doing so, we can protect you against any allegations of fraud or evasion. This area is very complex and requires a different approach for each matter so should only be undertaken by someone with the requisite experience.