04 May 11 ATO alert: holiday travel claimed as work related, investment or self-education expense - TA 2011/3
On 3 May 2011, the ATO issued Taxpayer Alert TA 2011/3 entitled "Arrangements involving holiday travel claimed as a work related, investment or self-education expense".
The Taxpayer Alert describes arrangements where a taxpayer claims a deduction for expenses incurred in relation to various educational courses and seminars ("educational activities") where the expenses have insufficient connection with the taxpayer's current income-earning activities and are private or domestic in nature. These expenses include the costs for domestic or overseas travel on a holiday activity or to a holiday destination.
The educational activities may include, but are not limited to, the taxpayer:
- Purchasing a self-study training program (for example CD, DVD and/or written publications) which may be undertaken at a holiday destination of the taxpayer's choice;
- Undertaking a self-study training program and/or attending a seminar on board a cruise ship; or
- Undertaking an educational activity such as a wealth creation seminar whilst travelling.
The ATO is currently reviewing these arrangements.
The Taxpayer Alert notes that where an activity is undertaken both for income-earning purposes and for private purposes, it is necessary to apportion the expenses between the purposes.