Hello Chasers,
Imagine you’re trying to impress the tax man during an audit with your work expense reports. You tell them you used the office car for meetings, bought fancy gifts for clients, and even donated generously to good causes.
The tax man knows the record-keeping rules back to front and asks for receipts and proof – but you, uh oh, don’t have much.
Not good!
That’s what happened to a real estate salesperson who went to the “Tax Tribunal” (Administrative Appeals Tribunal) claiming deductions for car use, gifts, and donations.
But without clear “proof of purchase” (receipts) or detailed records (like a car diary/logbook!), the tribunal said: “Sorry, can’t allow those claims!”
Here’s why:
Car confusion: He said he used the company car, but technically it wasn’t “his” car, so the special record-keeping he used didn’t work.
Plus, his car diary wasn’t detailed enough!
Mystery gifts and donations: He mentioned gifts and donations, but without receipts or clear explanations, the tribunal couldn’t tell if they were really for work or just personal treats.
Remember, the tax man (and tribunal) loves details!
Keep good records, receipts, and clear explanations for your work expenses, and you’ll have a much better chance of getting those deductions allowed.
If you want to get clarification on your record keeping requirements for a larger tax refund in 2024, please contact our experienced team on 03-55612643.
Have a great day!
Read more of our daily blogs for valuable insights and stay up-to-date with the latest industry news – click here to access the full article on our blog page.
