Australia revenue system depends on taxpayers giving exact information to provide tax liability and amount paying on time. To make sure the system is running on correct way some penalties are introduced which are explained as follows:
• General interest charge: It can be applied when the tax is not paid on the due date so that accrued interest charges have to pay
• Shortfall interest charge: It can be applied if an additional money of tax is payable owing to revise assessment
• Penalties: Punishment can be provided if a person not taking care during claim deduction or making fake or misleading statement.
The interest charges having intentional that taxpayers who didn’t pay yet their taxes should not receive any benefits over who are paying tax on time. The penalty provisions having intension to warning taxpayers to take care while doing their tax obligations.