The Australian Taxation Office (ATO) recently released a tax determination confirming that the cost of travelling to have a tax return prepared by a ‘recognised tax advisor’ (ie tax agent) is deductible.
However, the tax determination does caution that to the extent the travel relates to another, non-incidental purpose, then the expense must be apportioned.
While this is not new law, as we have always interpreted the law this way, it does confirm the ATO’s view is consistent.
The determination provides examples of taxpayers flying interstate and staying overnight, solely for the purpose of visiting an accountant. The flights, taxi fares, meals, accommodation and travel insurance is deductible.
Other examples illustrate trips taken for both private purposes and to visit a tax agent and the costs are required to be apportioned.
For further information on tax deductions leading up to 30 June please contact your usual Hanrick Curran advisor or alternatively Jamie Towers on 07 3218 3900.
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.