Tax return crackdown: ATO prosecutions soar as $2.7m in fines handed down

shares Share article Australians dodging their tax obligations are increasingly ending up in court , with prosecutions jumping 80 per cent and millions of dollars in fines handed down.

The Australian Taxation Office (ATO) revealed it has ramped up action against people and businesses failing to lodge tax returns as part of the shadow economy.

Dodging taxes is coming back to bite, with hundreds before the courts – and some losing their livelihoods. ATO

The shadow economy refers to economic activity knowingly hidden to avoid tax and super obligations.

It can also involve businesses or individuals failing to declare income, demanding cash payments for work, or denying workers their proper entitlements.

More than 350 people and entities have been prosecuted over the past two years, while over 305 have been convicted.

Court action has also resulted in fines totalling over $2.7 million.