Naughty vs Nice expense claims … Ho, Ho, Ho!

Before we all go on holidays, let’s talk about the “naughty” expenses the ATO finds on submitted tax returns.

Expenses placed on the ATO’s “Naughty” list
When you prepare your own tax return, you run the risk of claiming inappropriate deductions. This slows receipt of any refunds you may be entitled to and places you at risk of further ATO scrutiny. Here’s some of the more outrageous expense claims the ATO has rejected.

  • Giving their mother a car is very generous but it’s not a tax deductible expense
  • Lego sets purchased as gifts for their children are not the same as gifts purchased for clients, staff and suppliers.
  • Dental expenses because “a nice smile is essential to finding a job” won’t be accepted
  • Purchasing sporting equipment and membership fees for “athletic” children will be refused
  • Wedding reception costs can be huge but they aren’t a tax deductible expense
  • Several sleep deprived parents tried to claim:
    • Raising twins
    • The cost of raising 3 children
    • New born baby expenses
    • School uniforms for their children

Expenses placed on the ATO’s “Nice” list
There are all sorts of rules around the expenses you can claim as a tax deduction and our job is to find as many legitimate ones for you as possible.

No-one wants to be on the ATO Naughty List so let us help you with your tax returns and BAS. For straight-forward, practical accounting, taxation and financial advice contact our knowledgeable team at SVA and WPA by calling 02 8850 0388

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