Getting a court summons from the Australian Taxation Office (ATO) is stressful, but most ATO prosecutions aren't about tax evasion. The most common charge is simply failing to lodge tax returns or activity statements after the ATO has asked for them. The sooner you act, the more options you have.
What the ATO prosecutes
ATO prosecutions fall into two broad groups:
Failure to lodge or comply: not lodging tax returns, BAS or other documents, or not complying with an ATO notice, is an offence under the Taxation Administration Act 1953. The ATO usually prosecutes these cases itself in a local or magistrates court.
Serious offences: tax fraud, deliberately false statements and large-scale evasion are generally referred to the Commonwealth Director of Public Prosecutions (CDPP), and the penalties are far heavier.
Before it prosecutes for not lodging, the ATO normally sends reminders and a final notice. A summons or court attendance notice usually means those letters went unanswered.
The penalties a court can impose
For failing to lodge or comply, the maximum fines are set in Commonwealth penalty units ($364 each from 1 July 2026):
First offence: up to 20 penalty units.
Second offence: up to 40 penalty units.
Third or later offence: up to 50 penalty units, up to 12 months' imprisonment, or both.
Higher maximums apply to companies. The court can also order you to lodge the overdue documents by a set date, and failing to comply with that order is a further offence. A conviction is a criminal record, which can affect travel, employment and company directorships.
These are separate from the administrative penalties the ATO applies for late lodgement and the interest it charges on unpaid tax.
What to do if you're summonsed
Don't ignore it. Note the court date and the documents the charges relate to.
Lodge everything that's overdue as soon as possible. Getting the outstanding returns and activity statements lodged before the hearing is the most useful step you can take, and the court takes it into account.
Contact the ATO. Tell the officer named on the paperwork what you're doing to lodge. They can explain where the matter stands.
Get a lawyer for the court matter. A criminal lawyer can advise you on how to plead and represent you at the hearing.
Deal with any tax debt separately. Once your returns are lodged, a payment plan can often be arranged for the amount you owe.
For serious charges
If you're being investigated or charged for fraud or evasion, speak to a criminal lawyer with tax experience before you answer questions or provide documents. Don't destroy or alter records. A tax agent can then help reconstruct your financial position and prepare any returns your lawyer advises lodging.
How AWTS can help
Most of our prosecution clients simply fell behind on their lodgements. We can prepare and lodge several years of overdue returns and BAS quickly, often working from bank statements and ATO pre-filled data when records are incomplete. Contact us as soon as you receive a summons, and bring whatever paperwork you have. Our tax checklist shows what to gather.
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