Understanding Cash Payment Offences
There are two types of offences related to cash payments exceeding $10,000, and they involve strict liability. Here's what you need to know:
1. Single Payment Exceeding Limit
This offence occurs when an entity either makes or accepts a payment from another entity that includes cash equal to or exceeding $10,000. It's important to note that 'payment' here refers broadly to any transfer of financial value, including wages, goods, services, or donations.
2. Series of Payments Exceeding Limit
Similar to the first offence, this one applies when a series of payments, rather than a single payment, adds up to $10,000 or more. This applies specifically to payments related to a single supply or gift. For instance, buying a car in instalments or pledging donations in multiple payments.
Mistake of Fact Defence
If someone reasonably believes they're acting lawfully and wouldn't have acted that way if they knew it was against the law, they can use the Mistake of Fact Defence.
Penalty
The maximum penalty for these offences is a fine of 60 penalty units (as of July 2020, one penalty unit equals $210), which can be increased up to five times for corporations.
Should you have any questions or need assistance, feel free to reach out to Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment through our live calendar.
