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Section 25-5: More than meets the eye?

Published on 01 Apr 12 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

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:

Kaylene HUBBARD
Current at 24 August 2011 Click here to expand/collapse more articles by Kaylene HUBBARD.
 
Matthew Eakin
Matthew is a Tax Consultant with CABEL Partners.
  • Current at 1 March 2012
  • Current at 29 February 2012 Click here to expand/collapse more articles by Matthew Eakin.

    Phillip Browne
    Current at 29 February 2012 Click here to expand/collapse more articles by Phillip Browne.
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