Taxation Ruling

IT 2088

Income tax : year ended 30 June 1984 - arbitrary limits section 51 deductions

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FOI status:

May be releasedFOI number: I 1089802

RULING

Taxation Ruling No. IT 2048 sets out the limits which had been agreed by this office with a number of employee unions, groups or associations for the allowance of income tax deductions to members of the trade groups concerned without the need for verification in respect of incidental expenditure incurred by them in the course of carrying out the duties of their various employments. The limits applied for the year ended 30 June 1983.

2. Since the issue of the Ruling several employee organisations have approached this office to have the limits for their members reviewed and organisations have made representations on behalf of their members. While in the main the limits negotiated as applying for the year ended 30 June 1983 have not been changed, some of the limits were increased and additional limits have been negotiated. The limits set out in the attached schedule are to be applied in assessments for the income year ended 30 June 1984.

3. These limits have been set in the light of the information presently available to this office and are considered to represent amounts which might reasonably be expended by the member during the year on the item mentioned and which could reasonably be allowed as income tax deductions without the need for verification.

4. It must be stressed, however, that the practice applies in the general run of cases. It is not authority for taxpayers to claim income tax deductions in excess of the actual expenditure. For one reason or another a taxpayer may not incur expenditure in a year up to the amounts set out in the attached schedule. His or her claim for an income tax deduction should be limited accordingly. The approval of set amounts does not in any way restrict the Commissioner's right to request substantiation in a particular case of any claim for an income tax deduction.

5. On the other hand, where a taxpayer has incurred expenditure in excess of the limit, he or she is, of course, entitled to claim as a deduction the amount actually expended. However, in that case, it would be expected that the taxpayer would be able to substantiate his or her claim in full with receipts, invoices or other documentary evidence.

COMMISSIONER OF TAXATION
28 June 1984

APPENDIX

6.

References

ATO references:
NO 84/718-6

Related Rulings/Determinations:

IT 2048

Subject References:
ARBITRARY LIMITS
UNVOUCHED SECTION 51 DEDUCTIONS

Legislative References:
51(1)