Dodgy deductions exposed – case study 1

There are over 8 million taxpayers claiming work-related deductions and the Australian Taxation Office (ATO) are checking them out!

In 2014/15 approximately 450,000 income tax returns were scrutinised and that number is climbing every year as technology advancements are made.

The following weeks will see me exposing some of the dodgy deductions the ATO have picked up on, I hope you enjoy the read.

Case study 1 – car expenses:

A railway guard claimed $3,700 in work related car expenses for travel between his home and workplace.

He indicated that this expense related to carrying bulky tools – including large instruction manuals and safety equipment.

The employer advised the equipment could be securely stored on their premises.

The taxpayer’s car expense claims were disallowed because the equipment could be stored at work and carrying them was his personal choice, not a requirement of his employer.



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