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Section 25-5: More than meets the eye?


Section 25-5 of the Income Tax Assessment Act 1997 (Cth) is known as the provision under which taxpayers are able to claim deductions for the costs of completing their tax returns. Its scope, however, can be wider, extending to other tax-related costs and to costs incurred by an entity other than the taxpayer itself. This article explores the broader scope of the s 25-5 deduction.

The article examines in detail a pair of important court decisions in 2003, and draws two lessons from them. The first is to look beyond the obvious applications of s 25-5 when considering the availability of deductions for clients. The section can benefit clients beyond the costs of preparing income tax returns, and beyond the “obvious” taxpayer. The second is to ensure that adequate documentation is retained in relation to work performed for clients, rates applied to invoice work, and the manner in which items are invoiced.

Author profiles:

Phillip Browne CTA
Philip is the Managing Partner with CABEL Partners. Current at 01 March 2012 Click here to expand/collapse more articles by Phillip Browne.
Matthew Eakin
Matthew is a Tax Consultant with CABEL Partners.
  • Current at 1 March 2012

  • Click here to expand/collapse more articles by Matthew Eakin.

    Kaylene Hubbard ATI
    Kaylene is a highly experienced law graduate and solicitor with a special interest in taxation law. Kaylene worked previously as a partner at Deloitte and now provides taxation advice for CABEL Tax clients. In her role as tax partner, Kaylene leads CABEL Tax in challenging the status quo for tax advisers to achieve financial benefits for clients. Kaylene has a Bachelor of Arts/Bachelor of Laws from Macquarie University, and a Postgraduate Diploma in Commerce from the University of NSW. Kaylene is a solicitor of the Supreme Court of NSW and an affiliate member of Chartered Accountants Australia and New Zealand. Current at 01 January 2016 Click here to expand/collapse more articles by Kaylene HUBBARD.
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