By Staff Writer

A Monash University study has revealed more than a third of Australian men have had a bad experience with the ‘taxman’.

In the first part of a study undertaken by Department of Business Law and Taxation senior lecturer, Ken Devos, 300 Australian taxpayers were surveyed to investigate the relationship between demographics and taxpayers’ attitudes towards tax evasion and the penalties for tax evasion.

Mr Devos said some of the bad experiences included receiving a fine or being audited, getting bad service from the tax office and being given incorrect information. Alarmingly, men were so upset by their treatment, they considered some sort of revenge.

“It was concerning to learn that 44 per cent of these males said they would have had a bad experience against the Australian Tax Office (ATO) and would want to get even,” he said.
“Men were expected to be more willing to take the risk because they are more often the income-earner in the family and generally tend to earn more than women.”

In another question, respondents were asked for their opinions of a hypothetical scenario where they were a business owner who negotiated discounts for customers, in return for being paid cash to avoid payment of GST.

Mr Devos said an overwhelming 85 per cent of respondents indicated that being subject to a tax audit for their actions would have little effect on what others thought of them. But 82 per cent did say a jail sentence and media exposure would have a dramatic effect on their public image.

“Results also indicated that Australian-born respondents were more likely to see tax evasion as a game against the ATO and thought they would get away with it,” he said.

Mr Devos said participants were also asked to indicate what level of penalty should be used by the ATO for various types of tax evasion.

“Sixty-one per cent of respondents believed that the penalties imposed for shifting profits abroad should be very severe while almost half (47 per cent) of respondents felt severe penalties should also apply to taxpayers who under declare government payments,” he said.
“By examining the behavioural attitudes of taxpayers more closely, it is envisaged that governments may be able to bridge the tax gap – the difference between what is properly payable and what is actually collected – and eventually improve community values and understanding with respect to tax compliance.”

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