Woman cops suspended sentence for ignoring 91 tax returns

Court orders 12-month suspended sentence for woman who defied the ATO.

Woman fails to lodge 91 tax returns

A 65-year-old Geraldton woman ordered to lodge her outstanding 91 tax returns has been sentenced to a 12-month suspended sentence in prison for repeatedly failing to submit Business Activity Statements (BAS) and income tax returns.

Judith Ahearn, who is a partner in a road freight business, was last week sentenced in the Geraldton Magistrates Court after being found guilty of 91 charges of failing to comply with a court order.

Mrs Ahearn’s failure to lodge her BAS dates back to October 2008, with her unlodged income tax returns falling in the 2009, 2010 and 2011 financial years.

Last week’s sentencing follows years of warnings and notices from the Australian Taxation Office (ATO), as well as two previous court-imposed fines of $30,000 and $20,000 for non-lodgement.

ATO Assistant Commissioner Peter Vujanic said the court’s decision is a reminder of the seriousness of refusing to engage with the tax office.

“The ATO works hard to maintain a level playing field for all taxpayers,” Mr Vujanic said. “(This) court decision shows that no one is above the law.

“Despite our repeated attempts to engage with Mrs Ahearn to resolve her outstanding tax returns, she has shown a complete disregard for her basic obligations as a member of the Australian community.

“While we’re disappointed that we have not been able to resolve this matter outside of the court system, we hope that the sentence handed down sends a message to the community that lodging your tax returns is not optional.

“Our key message to anyone who’s having issues is to work with us to sort things out. Burying your head in the sand isn’t helpful for anyone.”

What is the longest you have gone without lodging a tax return? Have you ever been in trouble with the tax man? Were you able to resolve it easily?

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    COMMENTS

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    Glen48
    17th Jul 2018
    9:59am
    ATO want me to do returns for the 5 yrs I lived in the Philippines..
    MICK
    17th Jul 2018
    11:35am
    The real issue is the HUGE effort involved in doing some returns. It takes me several weeks from woe to go and the ATO expects people to 'comply' with no sympathy for what they are demanding as a legal obligation.
    I can understand that the woman concerned probably had had enough and then dug her heels in and took a stance. The system is so complex and so time consuming that she has a point.
    I respectfully suggest that people's time needs to be paid for if compliance involves significant time input for little income at the end of the day.
    I guess those who have not been hit up with this would not understand. It is horrific and probably one reason for putting your money under the bed rather than making it work.
    Ardnaher
    18th Jul 2018
    10:56am
    Why should this woman be the exception to the rule. We all knows our obligations as taxpayers...if we all did this what a mess there would be.

    I am an ordinary taxpayer and both husband self pay an accountant every year to do our tax returns and prior to 5 years ago we did ourselves.

    This woman is part owner in a company and there is no excuse in my books at all for non compliance.

    The court system is weak and the sentence was pathetic.
    Rae
    18th Jul 2018
    1:08pm
    Noodles as an ordinary worker you would never be allowed to get away with what business do. They are the Golden Ones who can do no wrong as far as our current Government believe.

    It's all Rudd/Gillard and greedy unions fault dontcha know.

    If it was an ordinary worker they would be in prison right now.
    johnp
    17th Jul 2018
    10:18am
    Why doesnt ATO just go and do her books for her then garnish her account - simple and easily done
    MICK
    17th Jul 2018
    11:53am
    The issue is the ATO does not want to do the work so they put it back on taxpayers.
    *Loloften*
    18th Jul 2018
    2:15am
    ATO just ineffiecient, as is Centrelink. Both our State & Fed Govn'ments don't give a flying shiiite abt anyone on what they consider 'Welfare.' Reckon the OAP should be the basic wage unless have $2M in assets including home, can get a Homesafe loan (no repayments 'til sold by kids!?) if cash poor.
    Paicey58
    17th Jul 2018
    10:21am
    Wow !!! A suspended sentence. That will teach her!!!
    Eddy
    17th Jul 2018
    11:58pm
    A suspended sentence comes with conditions, in this case the condition could be that she submitted the returns required. Probably an attempt by the court to ensure the lady complied with the tax laws. If she failed to submit the returns required she would know she was going to be gaoled for 12 months.
    HDRider
    17th Jul 2018
    10:27am
    I don't see a problem, partner in a road freight business required to submit BAS statements by law, tax office repeatedly reminded her she ignored them, what did she expect? She is very lucky not to be in prison IMHO, but I am biased I guess as I do my tax return every year at this time, even though I am a pensioner, it's the law, and I abide by it, fighting the tax office is never gonna end well for the tax payer!
    Cowboy Jim
    17th Jul 2018
    10:38am
    Ignoring letters from the tax department is rather courageous. They won't forget. Had an accountant all the years I was employed to do my return. When I finished work life he lodged a final tax return and have not won the lotteries to start activating the account again. But I am still buying tickets . . .
    HarrysOpinion
    17th Jul 2018
    10:58am
    Does the 12 month suspended sentence in prison mean that she can't vote any more?
    HarrysOpinion
    17th Jul 2018
    11:16am
    Always lodged my tax return. When ATO disallowed one of my professional subscriptions in 1981 as a tax deduction it offered me the option of accepting their ruling or paying $10 to go to court . I sent them the $10 to go to court. A month later they responded with a refund cheque of the $10 plus an adjusted tax refund for the tax deduction claim. 18 years later I had to do a paper audit for business motor vehicle expense tax deduction claim for that financial year. Never heard from them after that and got my fair tax refund. It pays to know and follow all the ATO rules to the very edge but not over the edge :) :)
    Cowboy Jim
    17th Jul 2018
    11:23am
    You certainly know your onions, HS. Well done :)
    KB
    17th Jul 2018
    11:31am
    Always do my tax and better to be honest. Honesty wins out. Even after you are deceased the ta department still expects the person attending to your final affairs to lodge a final tax return. No escaping from the grave.
    Alky
    17th Jul 2018
    12:34pm
    I didn't bother lodging a tax return for three consecutive years. I was on a very low income under the tax threshold and according to the ATO website I didn't need to. I worked it out that the ATO owed me a few dollars from franking credits on some shares I held but it wasn't worth the effort of claiming. I figured the ATO could have it in return for me not lodging a claim. Got a very terse letter and phone call from the ATO telling me that even if I don't get a refund or have to pay, I still have to lodge a "Nil Return". So, it seems that regardless of whether we aren't eligible for a refund and don't have to pay, we still have to lodge some sort or return every year.

    That was two years ago. Just last month I received a letter from the ATO saying that because I only ever lodge a claim for franking credits, they're going to lodge my return for me!! It seems that they're trialling a system where they automatically lodge my return based on the information they receive from my bank and the company whose shares I hold.
    So now we're back to square one where I won't be lodging any returns - but this time I will be covered
    KSS
    17th Jul 2018
    1:07pm
    What's the point of reporting this woman's age? Are we supposed to feel sorry for her because she is 65?

    She is not a 'little old lady' confused by the enormity of filling in a BAS statement then bullied by the wicked ATO. She is a business woman who has consistently and willfully refused to meet the obligations of the business she owns! Frankly, she got off light.
    MD
    17th Jul 2018
    1:44pm
    Yep agreed KSS and you can bet that she'll want an 'entitlement' age pension - for all the income tax (she never paid).
    jackie
    17th Jul 2018
    1:50pm
    She thought they wouldn't catch up with her because she had done it for so long. The ATO should jump on them straight away instead of allowing things to go this far.
    Florgan
    17th Jul 2018
    1:29pm
    I don’t think this punishment will deter anyone ????
    jackie
    17th Jul 2018
    1:51pm
    I agree. Our Prime Minister is a good example. His excuse is it's legal.
    jackie
    17th Jul 2018
    1:48pm
    Always do your tax and you won't have any issues. Only our Prime Minister and his elitist friends don't have to pay tax.
    Ausdigga
    17th Jul 2018
    2:57pm
    I seem to remember an investigation carried out by one of tv mobs in the early 80s about a QC in his 60s who had never filled in a tax return in his life. The reporter's filmed him driving out of his mansion and later walking along a jetty to board a huge gin palace boat, all owned by his wife and run through a family trust.
    Myself, I have never been auditedin 48 years and put it down to having a surname starting with
    W !
    Willfish
    17th Jul 2018
    3:07pm
    Yes, and you flout the law, apparently you will get a really naughty slap on the back of your hand.
    Rae
    18th Jul 2018
    1:15pm
    Only if you own a business. Lots of different rules for those folk including choosing whether to have superannuation or not.

    All sorts of ways they can sort out their affairs to get a full OAP after minimising taxes for decades though. All legal too.
    Knight Templar
    17th Jul 2018
    4:28pm
    Twelve month suspended sentence! Hardly a strong message to the community about lodging tax returns. According to the article she was sentenced (a slap on the wrist with a feather) for failing to comply with a court order.
    Sundays
    17th Jul 2018
    5:37pm
    I don’t see the problem. If she’s smart enough to run a business she can do a BAS. Most computer systems provide reports with the figures required. Otherwise hire someone. As to personal tax returns, I was a Tax Help volunteer for 10 years. Took no more than 30 mins for easy, 45 mins for more complex. Again, she could have paid someone and claimed it as a deduction.
    *Loloften*
    18th Jul 2018
    2:01am
    HELP, please. Can anyone tell me if I can claim a back-dated/belated tax return for shares I inherited when my most beloved passed away 9yrs ago re imputations, which I knew nothing abt & haven't made a tax return since hubby made his last one 2004. The small parcel of Shares have always been in my name altho only recently thought/knew abt imputation tax deductions re recent publicity.
    Sundays
    18th Jul 2018
    9:07am
    Ring the Australian Tax Office and ask them. They can also send you a Refund of Franking Credits form which is only one page and easy to fill in. You don’t need to complete a full tax return if you don’t pay tax. I find the ATO very helpful
    pedro the swift
    19th Jul 2018
    2:17pm
    What! 65 years old and needs 91 tax returns. I know the ATO is thorough but how far back before she was born have they been taxing her?
    ATO "works hard to maintain a level playing field for taxpayers" and " no one is above the law" That really caused me roll on the floor laughing!


    Tags: money, finance, tax, ato,