What will happen if I don't put my interest income in etax?

Question

I have one job in last financial year, and I got one PAYG from my employer, I will put the income and tax withheld amount in my etax, but I don't want to put my interest income in it, because I need to pay more tax, ( I work out the difference by etax before), will the consequence be very serious if I don't put the amount of interest income(around $1 400) in etax? According to etax, I will get $400 less from my tax return if I put down my interest income.

Also, I am overseas student, I may apply permanent residency after I graduate, will someone check my tax record later?

Answer 1

If you are a resident for tax purposes (most overseas students are) you are required by law to declare all sources of worldwide income in your tax return. This is clearly deliberated tax evasion if you don't. Tax evasion is an offense, it's against the law and the ATO easily catches tax evaders and penalises them. The penalties are much higher if the fraud was deliberate instead of accidental. If fraud and tax evasion are suspected, the ATO can request or demand information about people from just about any organisation, and not just from ones in Australia. There are even quite a few people who work for the ATO participating in Yahoo Answers.

So you hope to become a permanent resident in Australia and are wondering whether or not the ATO share information with the Immigration Dept?? Of course they do - they're run by the same government! We do not want criminals moving to Australia. What is more important to you in the long term? You are being very silly even contemplating this on a public forum.

Answer 2

interest income is one of the easiest things for the tax office to check.  the banks report how much interest they pay to the ATO and then the ATO can easily check this (in fact, that is how they get the information to pre-fill into etax).  Unless, of course, you didn't quote your TFN when opening your account.  If you didn't quote your TFN, then the ATO will have trouble matching this.  That is why if you dont' quote your TFN, the banks are required to withhold tax at the highest rate - and if this is the case, you should disclose the interest AND the TFN withholding credit on etax (and you will most likely get a refund or at least a reduction in tax)