It’s tax time again, and if you’re anything like us, you’re frantically scrambling around that giant pile of receipts you’ve been diligently collecting all year, looking for things you can claim.
But you might want to rethink adding that black dress you wore to your cousin Sharon’s wedding to your deductibles.
According to a report by The Courier Mail, people are trying to claim some pretty, uh, interesting things this year.
So far, the Australian Tax Office has seen someone claim their pet Maltese Terrier is actually a “guard dog”, while another person tried to claim a weekend getaway, citing stress relief.
While you definitely have to admire their creativity, ATO assistant commissioner Kath Anderson told The Courier Mail there are repercussions for falsified claims.
"If a claim raises a red flag in the system, the ATO will investigate further and if the claim is incorrect, we will work with the taxpayer to correct it," she told The Courier Mail.
"Depending on their behaviour, we may also impose a penalty."
And believe it or not, fluffy white dogs disguised as guard dogs aren't even the strangest claims the ATO has seen over recent years.
A 2015 report by News.com.au said people had successfully claimed things like Xbox consoles and even breast implants.
Accounting firm H&R Block told News.com.au, they had processed breast implants for an exotic dancer, sex toys for adult entertainers, a pool table for a business, and even ceremonial swords for a professional sword swallower.
So, how do you know what's okay and what's taking things a little bit too far?
"The simplest way to determine whether an expense is deductible is to follow the three golden rules," Anderson told The Courier Mail.
"You must have paid for it yourself and not been reimbursed; it must be directly related to earning your income and not of a private nature; and you need a record to prove it."
So, that's probably a no to Netflix.
Top Comments
Humans will always try to get away with whatever they can. It's human nature. But there are many legitimate claims that are just as crazy, but allowable.
I'm told that if you have a $2 share in a company, and the AGM is, say, in Perth then you can claim a return trip to attend that AGM as a shareholder.
Also why is it that someone gets a fully maintained company car as part of their salary package, but if you tried to claim a pair of socks you get knocked back?
You can claim a trip to Perth, but only the portion that involves going for the shareholder meeting.
So, if you go for a 1 hour meeting and a 7 day holiday you can only claim a little bit.
I'm not sure what someone's salary package has to do with claiming a uniform allowance?