The consequences of having errors or ommisions discovered during a tax audit can be costly. Penalties of up to two times the amount of tax undercharged may be imposed. In fraud cases the penalties are heightened to three times with fines of up to $10,000 and/or imprisonment not exceeding three years. Under the recently enacted legislation for serious fraudulent tax evasion offences, the penalty has been further increased to 400% with increases in fine amounts and imprisonment. It is noted that some errant taxpayers have been hauled to court and fined in recent years.