The AAT has rejected a taxpayer’s appeal against the disallowance of many expenses he claimed concerning his work as a relief teacher and a photography tutor.
During the income year ended 30 June 2011, the taxpayer worked as a relief teacher on a mostly casual basis at 5 primary schools. He derived a salary of $43,295 in that process. He also worked as a casual tutor at a photography school where he derived a salary of $2,530 and also as an extra working in movie and commercial production where he made a small amount of money.
The Tribunal said the taxpayer claimed to have made a loss on a photography business that he established. The taxpayer claimed deductions in the amount of $42,112 in respect of these various expenses and outgoings eg CDs and DVDs, copying, movies and plays, camera expenses, travel, car expenses, home office expenses. The Commissioner conducted an audit and disallowed all but $8,470 in outgoings. The taxpayer then asked the AAT to reconsider the objection decision.
After reviewing the matter, the Tribunal upheld the Commissioner’s decision. It found the taxpayer could not prove the assessment was incorrect and failed to demonstrate what the correct assessment should be.
(AAT Case [2014] AATA 821, Re Jones and FCT, AAT, McCabe SM, AAT Ref: 2014/0419, 31 October 2014.)
[FJM Note: I’m not sure why the Commissioner did not disallow more than this on the basis that the ‘non-commercial loss’ provisions would quarantine the losses to that source of income.]
[LTN 218, 11/11/14]