Hi Bright, LoisB has the same question...

I, too, was amazed that the tax office didn't seem to care. I asked an accountant and he said that if they don't have a file on you as a having owed them tax in the past, the system simply doesn't flag you as a problem.

Now, XH has never worked in a real job. He hovered around college for many years chopping and changing from degree to degree (why didn't I see this as a problem?).
Then he met me. I was the finance and the equity he needed to start dabbling in his own 'businesses'.

He has NEVER paid tax as he hasn't ever earned anything from his self employment (hasn't even paid off his student loans as they kick in when you lodge a tax return). Money comes in to his businesses but it goes straight out again. And eventually, he has to liquidate the business.

So, he is off the radar as far as the tax office is concerned.

These days, he just uses the income from his current business as an ATM as far as I can see.

It's beyond mind-boggling to me that anyone could operate like this. I get nervous if i haven't paid a bill at least a week before it's due... and as far as doing anything illegal, tax-wise... I'd never sleep again!

If they ever do catch up with him, I can't imagine what would happen. We are talking almost two decades of income without having paid tax (or keeping records).
I feel sick just writing about it.