While most people are in the process of lodging their tax returns during this time of the year, the Australian Taxation Office (ATO) is also in the process of assessing some unconventional tax claims made by tax payers.
Any tax deductions that can be made are clearly stated on the ATO website which can be found here. To put it simply, one is able to claim a tax deduction if they have incurred an expense that is work related and which is incurred as part of the job. While this may seem straight forward to some, others see this as somewhat of a grey area. In the past, we have seen the ATO reveal some interesting items that people have tried to claim which have unsurprisingly been rejected. There have been stories released by the ATO of some courageous individuals claiming items such as Lego sets, childcare fees, private school fees, medical procedures such as dental costs and even wedding expenses.
In most cases, tax claims that are considered to be outrageous are disallowed and may be considered to be honest misunderstandings. There are cases however where an individual could face having penalties imposed on them due to the nature of their claims. These are typically claims that are large in value and are blatantly obvious that they are not work-incurred expenses.
To avoid any penalties associated with the making of a dishonest claim as part of one’s tax return, it is essential to be honest with tax agents. Go through the readily available resources provided on the ATO website to gain a deeper understanding on what you are able to actually claim.
If you are unsure as to what you are entitled to deduct from your tax return, please contact the Tax Advisory team at Morrows to book an appointment to learn how we can assist you.