What is a duty investigation

How we select customers for investigation

Revenue NSW uses specialised data matching programs to identify risks or errors in assessments for transfer duty, surcharge purchaser duty and landholder duty.

We also select investigations based on:

• research and risk profiling
• information sharing with other government agencies, and
• tip-offs and referrals.

Common errors that lead to investigation

The most common reasons why we select transactions for investigation include:

• understated dutiable value of a property
• incorrect processing of exemptions or concessions
• not declaring foreign person status, resulting in unpaid surcharge purchaser duty
• not informing Revenue NSW of change in land or property usage
• ineligible recipients of duties related benefits and grants, including the First Home Buyers Assistance Scheme, and
• failing to declare the correct dutiable value when transferring the registration of a motor vehicle.

What happens when you are investigated

A Revenue NSW staff member will call you on the phone, if possible, to discuss the investigation.

We will also email you details about the investigation and how to respond using the Duties Compliance Portal.

We will explain the:

• reason you were selected
• information you need to send us
• timeframe for the investigation and further information requests, and
• resources and support available to assist you with the investigation.

Duties Compliance Portal

This is a secure Revenue NSW website that allows you to:

• securely submit documents we need for an investigation
• transfer your case to a contact for actioning, such as a solicitor or another person who is authorised to act on your behalf, and
• access all correspondence, such as your Notice of Investigation letter (notice), requisitions, and finalisation letters.

The notice formally confirms that an investigation has commenced and includes details of the information you need to provide.

Read more about how to respond to an investigation and the Duties Compliance Portal.

Your rights during an investigation

You may:

• nominate someone else to represent you on your behalf (legal representation)
• request an extension of time to submit any documents, and
• ask us to clarify any information to help you understand your obligations.

Our approach to compliance

During an investigation, you can expect that we will:

• clearly explain what information we require and why we need it
• provide you with a reasonable time in which to respond to our requests
• review the information you provide to us in a timely manner
• keep you informed of the progress at regular intervals, and
• provide education to help you process future duty transactions.

Investigation outcomes

An investigation may result in:

• No Further Action – where no errors are found.
• Issuing of a Duties Notice of Assessment (Notice of Assessment) – where errors have been identified resulting in additional duty payable.

Additional tax payable

Payment is due 21 days after the issue date of a Notice of Assessment.

Read more about how to pay transfer duty.

Interest and penalties

Failure to pay the correct amount of duty on time is considered a tax default and is subject to interest and penalty tax.

You may be charged interest and penalties depending on the outcome of the investigation and the circumstances of any tax shortfall.

Commissioner’s Practice Note 024: Interest and penalty tax guidelines explains the application of interest and penalty tax to all taxation laws administered by Revenue NSW.

Objections and reviews

If you disagree with any of our findings you can lodge an objection.

You must lodge the objection in writing within 60 days of an assessment or decision being made.

If your objection is unsuccessful, or Revenue NSW does not respond within 90 days, you have the right to seek a review by the NSW Civil and Administrative Tribunal (NCAT).

Read more about objections and reviews.

Information for solicitors, conveyancers and accountants

• Read about the investigation and audit process for Approval Holders for Electronics Duties Returns (EDR).
• EDR agents are also subject to ongoing random verification audits.

Related information

• Read what happens when your duty is overdue.
• Learn how to report duties fraud and scams.
• Our Customer Commitments outline what you should expect from us.