In a recent case heard before the Administrative Appeals Tribunal of Australia. A taxpayer was disallowed his car expenses as he was unable to substantiate his claims.

Please refer: Reid and Commissioner of Taxation (Taxation) [2019] AATA 4624 (12 November 2019)

Below is an excerpt from The Australian Taxation Office (ATO) concerning substantiation of a claim:

“The Australian tax system relies on taxpayers self-assessing. This means you are responsible for working out how much you can declare and claim on your tax return. You also need to be able to show how you arrived at these figures – in some cases, you may be required to provide written evidence.”

“In order to prepare an accurate tax return and support the claims you make, you need to keep careful records. The records you need to keep depend on your situation, but as a rule, it is better to keep too many records than not enough.”

If you would like to discuss further please contact us:
 McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
 www.mcnamaraandcompany.com.au/contact-us
 Phone +61 3 9428 1062
 Email admin@mcnamaraandco.com

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