Latest Accounting News

Golden Rules for Deductions

 

 

The Australian Taxation Office now uses sophisticated data analytics to assess a range of deductions and claims. 

Taxpayers must follow three golden rules when making a deduction:

  • the taxpayer must have spent the money (and not been reimbursed);
  • the claim must be directly related to earning the taxpayer’s income;
  • they must keep records to prove it; and
  • taxpayers may receive a “please explain” or have a claim disallowed.

 

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