Editing Tax file number (section)

==Amnesty 1988==

One implication of the enhanced system using TFNs to match interest and dividend income with tax file numbers and their corresponding entities – or absence of TFNs/corresponding entities as the case may be – was that it would be increasingly difficult to hide such income from the ATO. There was also a risk that in cases where the undisclosed past tax liabilities were large, offenders could be identified and pursued for arrears plus severe penalties (a percentage of the arrears, plus interest on the arrears). In view of the new legislation, the ATO offered an amnesty from these penalties as incentive for affected persons to amend their returns for preceding years – by including previously undeclared interest income – pay their outstanding tax – without the available penalties being imposed on the increased tax liabilities.

Between May 1988 and October 31 1988 the ATO conducted this amnesty so that taxpayers who had previously failed to fully declare passive income such as bank interest, share dividends and so forth and other non-taxpayer persons who had failed to submit income tax returns in previous years could lodge retrospective amendments to returns or lodge retrospective returns. In such cases, persons claiming relief under the amnesty became liable for outstanding income tax, but were generally excused from fines and penalties that would have been imposed in the absence of the amnesty.

The amnesty was subsequently extended beyond October 31 1988, with late enrolled amnesty participants being given until April 15 1989 to lodge amended tax returns or lodge formerly missing returns disclosing additional previously undeclared income.

[[File:ATO 19880819 BFT Amnesty TFN 158 971 016 Public.jpg|thumb|1988 ATO amnesty case – advice of issue of tax file number]]

In 2014 the ATO conducted a second amnesty, known as Project DOIT (Disclose Offshore Income Today). The 2014 Amnesty was directed at income overseas. The 2014 Amnesty is said to be the ATO's last amnesty.