The tax declaration decision is legal for taxpayer to disclose their income. There is no matter your income is less than certain threshold.
In a case of, if you are failed to report your income to tax authorities, you may penalize in depends upon your case and you liable to pay tax liabilities.
The taxpayer has choice between two scenario. First taxpayer should declare his income and second is that taxpayer may declare less income than he actually get from employer. If taxpayer go with second choice , tax authorities will investigate the amount which he got from his employer. If he is not, it’s better to go with first choice for taxpayers.
The purpose of this section is to investigate the dynamic rather than the comparative static aspects of taxpayers income declarations. To illustrate, whether for fixed parameters such as tax rates of the year, taxpayer’s declarations will be changed by increase or decrease over time, rather than whether in a fixed period the declaration will increase or decrease if a parameter is changed.
The main issue about declaration is that there is co- related with each other in different ways. First of all, current decision must be influenced by pas declarations and activity, since the find out penalty by ATO, and second is a, if your decision to cheat ATO today, it will affect your future mortgaging for house since, the penalty not remove by ATO.