Business Analyst’s Travel Expenses Denied by the ATO

In relation to claiming work related expenses here is an ATO example of how a taxpayer came unstuck in claiming travel expenses as a deduction.

A business analyst who travelled between Shanghai and Australia for work claimed over $46,000 in travel expenses.  When asked to substantiate his claim, the analyst produced receipts for rent, meals, laundry, phone, taxi, and train travel expenses while in Shanghai.

When the ATO contacted the employer, they were advised that this employee was reimbursed for the costs of all his meals, accommodation and travel expenses.  Because the employee had been reimbursed they were not entitled to then claim them as a deduction for tax purposes.  On this basis, the analyst’s claims were disallowed by the ATO.

If it is unclear if an expense is an expense for tax purposes or you just want to make sure, call Balanix Solutions today on (07) 3264 4783 for expert advice.

David Balwin Tax Accounting CFO Business Advice