06 Jul 1212 A matter of interpretation?
MEMBER 142 writes:
"We recently received a wad of letters from the ATO, advising that some of our clients were to be contacted regarding work related expense information. Of particular note was the advice given to truck drivers. The advice contains a warning that 'regardless of how much allowance you receive, you can only claim a deduction for expenses that you paid...you must actually incur the expense and keep the relevant records' followed by [a reference to the] deductions disallowed in Fardell v FCT 2011 ACT 10-20.
Talk about wielding a big stick.
Doubtless all the truckies on my books will be quaking in their respective boots. It’s a pity that the ATO advice omitted to mention that the circumstances in Fardell could be distinguished from the circumstances of almost any other truckie, i.e. lost/damaged log books; changeover trips; employer-specific trip payments, etc, etc. Not one of my truckies' circumstances would be on all fours with that case.
The ATO expects honesty from taxpayers; we expect honesty from the ATO."