Penalties in general: Penalty rules

Rules for imposing penalties

A single breach may result in both a civil and a criminal penalty. For example, tax evasion is subject to both types of penalty.

Only one shortfall penalty can be imposed for each tax shortfall. If a tax shortfall attracts more than one penalty, the highest of those penalties is imposed.

Civil penalties can be imposed after prosecution for an offence, whether or not the prosecution is successful.

However, a taxpayer will not be prosecuted for an offence if a shortfall penalty has already been imposed.

Standard of proof

The standard of proof for imposing civil penalties is the civil standard of "on the balance of probabilities". This means that there must be a reasonable degree of probability that the offence was committed.

In the case of criminal penalties imposed by the courts, a higher standard of proof is required-it must be proven "beyond reasonable doubt" that the offence was committed.

Onus of proof

If you challenge the imposition of a civil penalty, except for evasion and obstruction, the onus is on you to prove that we are wrong.

For a civil penalty for evasion or obstruction, the onus of proof rests with us, as it does for criminal offences.

Date published: 30 Aug 2006

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