Most read
Bitcoin price jumps, but how high can it go?...
Bitcoin price jumps, but how high can it go?...
Latest Podcast
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...
Resources
There is $17.5 billion in lost and unclaimed super across ...
There is $17.5 billion in lost and unclaimed super across ...
Save
Strange tax claims surface as Aussies ‘push the envelope’
Cosmetic surgery and expenses for their dogs are just some of the outlandish things Australians tried to claim as tax deductions last tax period, as the ATO increasingly cracks down on “work-related” expenses.
Strange tax claims surface as Aussies ‘push the envelope’
Cosmetic surgery and expenses for their dogs are just some of the outlandish things Australians tried to claim as tax deductions last tax period, as the ATO increasingly cracks down on “work-related” expenses.
Speaking with Nest Egg, Mark Chapman, director of communications at H&R Block revealed that once again Aussies tried to push through a range of presumptuous “work-related” expenses last tax time.
According to Mr Chapman, one pop-glamour model attempted to claim cosmetic surgery on the basis that the procedure would prolong her working life.
“You can actually kind of see the rational for that,” Mr Chapman admitted.
“But, having said that, the ATO has had a few of these cases over the years where people have tried to claim cosmetic surgery of one sort or another and they always throw them out.
“Medical procedures are always private.”
Another high-profile television celebrity tried to claim that the new suits he wore every night on screen should be tax deductible.
The presenter even attempted to take his claim further and include the suits as a charitable donation, as he regularly gave the outfits away to charity after being worn once.
“He wanted to claim a tax deduction for the price of the suits. In addition to that, once he wore the suits once, he then gave them away to charity, so then he wanted to claim a second tax deduction,” Mr Chapman explained.
“Business suits, no matter who is wearing them are not tax deductible. It’s a very common misconception. They’re considered normal attire and the ATO won’t have a bar of it.”
Mr Chapman said a common tax deduction misguided taxpayers often attempt to claim each year is the expenses of keeping their dogs.
“People in the security profession, or people who live on farms often try to claim the cost of their dogs as a tax deduction,” he elaborated.
“Sometimes that is allowable, depending on the particular situation of the taxpayer and, importantly, depending on what type of dog it is and whether it serves some kind of function in their security business or their farming business.
“We do get people who try to push the envelope a bit by trying to claim breeds of dogs that simply aren’t appropriate to their occupation. Clearly trying it on.”
Significant ramifications for misleading claims
Although claims such as these may be considered trivial, Mr Chapman said there are potentially severe repercussions for taxpayers who attempt to push through expenses for which they are not entitled.
“If you do claim something that you’re not entitled to and the ATO comes back and queries that, in the first instance you’re going to have to repay some of your refund or pay some extra tax depending on what your position was in the first place,” he warned.
He said taxpayers who try to claim such expenses may face significant penalties and interest repayments, should the ATO pick up on their ineligible claims.
“The penalties can be quite severe; anything up to 75 per cent of the amount of tax that you avoided by claiming the deduction, depending on how severe your level of culpability was,” Mr Chapman said.
“So, that can be a really big financial impact if you actually get this wrong,” he concluded.
Read more of tax claims ATO's been watching here.
Tax saving
How are Australians planning on spending their tax savings?
Essential bills, savings accounts, Christmas gifts and exchange-traded funds appear to be the big winners from the latest round of tax cuts, new research has revealed. ...Read more
Tax saving
First in the world: SA imposes EV tax
The South Australian government is the first government in the world to introduce an electronic vehicles tax following an announcement by the treasury. ...Read more
Tax saving
5 tips as tax deadline looms
Australians are being warned that they have just two weeks left to get their finances in order if they have not posted a tax return yet. ...Read more
Tax saving
ATO warns businesses of JobKeeper scam
The ATO is warning the community about a JobKeeper scam which is asking members to enter personal information. ...Read more
Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now
Raging floods, the tech stock bubble and the ongoing SG debate
Listen now
Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now
The continued property boom, ethical investing and engaging with your super fund
Listen now
Tax saving
How are Australians planning on spending their tax savings?
Essential bills, savings accounts, Christmas gifts and exchange-traded funds appear to be the big winners from the latest round of tax cuts, new research has revealed. ...Read more
Tax saving
First in the world: SA imposes EV tax
The South Australian government is the first government in the world to introduce an electronic vehicles tax following an announcement by the treasury. ...Read more
Tax saving
5 tips as tax deadline looms
Australians are being warned that they have just two weeks left to get their finances in order if they have not posted a tax return yet. ...Read more
Tax saving
ATO warns businesses of JobKeeper scam
The ATO is warning the community about a JobKeeper scam which is asking members to enter personal information. ...Read more
Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
