The Australian Taxation Office (ATO) has issued a warning ahead of this year’s tax time for so-called ‘sovereign citizens’ who try to get out of lodging a return.
Sovereign citizens are a growing movement across the world, made up of people questioning the legitimacy of governments and institutions, and therefore the legality of laws created by governments.
Put more simply, sovereign citizens believe laws set by politicians apply to them and that there is a legal basis for this.
Now, the movement is claiming people can ‘opt out’ of paying taxes or lodging a return.
But the ATO says there is no basis for sovereign citizens’ claims and they are liable for any tax debt they incur, just like any other Australian.
“Operating outside the tax and regulatory systems is not a victimless crime, and can have serious impacts,” an ATO spokeswoman told news.com.au.
“‘Sovereign citizen’-type claims promoted by some that somehow you can opt out of the tax system, or that the ATO does not have legal standing, have been repeatedly debunked, and are likely to lead to significant penalties.”
So, despite what you may have read online you do need to do your taxes this year or face some stiff penalties from the ATO.
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