Australia’s revenue system relies on taxpayers provided that correct information to set up their tax liability and paying the correct amount of tax on time. To ensure the system is fair for everyone:
- General Interest Charge is applied to an unpaid tax liability from the date it was due to be rewarded until it and the accrued interest charges are paid
- Shortfall Interest Charge is applied where an added amount of tax is payable because of an amended assessment
- Penalties are imposed for conduct such as not taking logical care in claiming a deduction to which you are not entitled, or making a false or misleading statement.