Travel expense and transport of bulky tools claim denied

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An individual has been unsuccessful before the AdministrativenAppeals Tribunal in a matter concerning certain deduction claims fornwork-related travel expenses. The individual was a sheet metal worker whosenhome was located some 60 km from his employer’s main work site. The individualnmade a number of work-related deduction claims. However, after variousnconcessions made by both the individual and the Commissioner of Taxation, thenremaining issue between the parties was whether the taxpayer was entitled to andeduction for work-related travel expenses.

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The man argued that his employer required him to supply hisnown tools and that they were too bulky to be transported to work other than byncar. He also questioned whether his employer provided secure storage facilitiesnfor his tools. In refusing the taxpayer’s claim, the Tribunal noted it was thentaxpayer’s own admission that it was his own personal choice to transport hisnvarious hand tools out of security concerns. The Tribunal also said thentaxpayer’s security concerns were “not supported by objective evidence”. Thentaxpayer’s claim was therefore refused.

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TIP:nThe ATO reminds individuals to make sure they get their deductions right. Inncertain circumstances it will contact employers to verify employees’ claims. Innthis case, the ATO contacted the taxpayer’s employer to check his claims,nincluding whether the employer supplied safe storage facilities.

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Important: Clients should not act solely on the basis of the material contained in Update. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This update is issued as a helpful guide to clients and for their private information.

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