The ATO has published some of the most unusual claims that they disallowed last financial year.
Nearly 700,000 taxpayers claimed almost $2 billion of “other expenses “, but assistant Commissioner Karen Foat said that a systematic review of claims had found, and disallowed, some very unusual expenses.
“A couple of tax payers claimed dental expenses, believing a nice smile was essential to fining a job – and was therefore deductible. It isn’t and their claims were disallowed”.
“Another taxpayer claimed Lego sets they brought as a gift for their children. Unsurprisingly, this claim was disallowed. Personal gifts don’t qualify, and its not OK to ask Australian Taxpayers to subsidies presents”.
The ATO review found that some taxpayers were incorrectly claiming a range of private expenses such as child support payments, private school fees, health insurance costs and medical expenses, all of which are not allowable.
The ATO is reminding taxpayers that, in order to claim an “Other Deduction”, the expense must be directly related to earning income and they need to have a receipt or record of the expense.
In addition to the above claims, the other top “Most Outrageous Claims” included:
- Claims for sporting equipment or membership fees for their child athletics;
- Many tax payers tried to claim the purchase of a brand new car (in excess of $20,000 each);
- One “particularly charitable”taxpayer tried to claim a car purchased as a gift for their mother;
- One taxpayer made the claim for “the cost of raising twins”, while another claimed the “cost of raising three children” (and another taxpayer was obviously shocked at the cost of having children, simply stating “New born baby expensive” when making their claim);
- Other taxpayers claimed school uniforms, before school care, and school fees and expenses; and
- One taxpayer decided to claim the cost of their wedding reception.
Needless to say, the ATO disallowed all of these claims in full.
The Tax Advisers’ Voice- NTAA
September 2019 Edition No 295
Ref: ATO media releases, 30 July 2019
If you require assistance completing your tax return, contact your working professional at Coff’s Coast Consulting.
