INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision F - Substantiation of certain expenses of years of income up to and including 1993-94  

SECTION 82KU   DOCUMENTARY EVIDENCE  

82KU(1)   [Receipt, invoice for non-depreciation expense]  

A reference in this Subdivision to documentary evidence of an expense incurred by a taxpayer is, except in the case of depreciation, a reference to a document, being a receipt, invoice or similar document, that -

(a) sets out -

(i) in any case - in the English language; or

(ii) in a case where the expense was incurred outside Australia - in a language of the country where the expense was incurred,

particulars of -

(iii) the date on which the expense was incurred;

(iv) unless subparagraph (v) applies - the name of the person who supplied the goods or services to which the expense relates;

(v) if the goods or services to which the expense relates were supplied in the course of a business carried on by a person - the name of the person or the business name under which the person carries on the business;

(vi) the amount of the expense expressed in the currency in which the expense was incurred;

(vii) the nature of those goods or services; and

(viii) the date on which the document was made out;

(b) is supplied by or on behalf of the person referred to in subparagraph (a)(iv) or (v), as the case may be; and

(c) is obtained by or on behalf of the taxpayer at, or as soon as reasonably practicable after, the time when the expense is incurred.

82KU(2)   [Receipt or invoice for depreciation expense]  

A reference in this Subdivision to documentary evidence of an expense incurred by a taxpayer is, in the case of depreciation in respect of property, a reference to a document, being a receipt, invoice or similar document, that -

(a) sets out -

(i) in any case - in the English language; or

(ii) in a case where the property was imported into Australia by or on behalf of the taxpayer - in a language of the country from which the property was originally exported,

particulars of -

(iii) the date on which the property was acquired by the taxpayer;

(iv) unless subparagraph (v) applies - the name of the person from whom the property was acquired by the taxpayer;

(v) if the property was supplied in the course of a business carried on by a person - the name of the person or the business name under which the person carries on the business;

(vi) the cost of the property to the taxpayer; and

(vii) the date on which the document was made out;

(b) is supplied by or on behalf of the person referred to in subparagraph (a)(iv) or (v), as the case may be; and

(c) is obtained by or on behalf of the taxpayer before, at, or as soon as reasonably practicable after, the time when the property is first used, or is installed ready for use, for the purpose of producing -

(i) in a case where the property is a car - assessable income of the taxpayer; or

(ii) in any other case - salary or wages of the taxpayer.

82KU(3)   [Receipt or invoice not usually supplied]  

Where the person carrying on a business does not, in the ordinary course of the business, supply a receipt, invoice or similar document constituting documentary evidence of -

(a) an expense (other than depreciation) that was incurred by a taxpayer and relates to goods or services that were supplied in the course of the business; or

(b) an expense constituted by depreciation in respect of property that was supplied to a taxpayer in the course of the business,

subsection (1) or (2), as the case requires, applies in relation to such an expense as if a reference in that subsection to a receipt or invoice included a reference to a statement or certificate.

82KU(4)   [Supply of goods, etc, not in course of business]  

Where a person supplies, otherwise than in the course of a business -

(a) goods or services to which an expense incurred by a taxpayer relates; or

(b) property depreciation in respect of which constitutes an expense incurred by a taxpayer,

subsection (1) or (2), as the case requires, applies in relation to the expense as if a reference in that subsection to a receipt or invoice included a reference to a statement or certificate.

82KU(5)   [Lease or interest payments]  

For the purposes of this Subdivision, where a document, being a statement, certificate or similar document -

(a) sets out in the English language, in relation to each of 2 or more payments -

(i) that are expenses incurred by a particular taxpayer during a period during a year of income;

(ii) each of which is expenditure, or a payment, of a kind referred to in paragraph (d) or (e) of the definition of car expense , or in paragraph (d) or (e) of the definition of employment-related expense , in subsection 82KT(1) ; and

(iii) that were made to a particular person,

particulars of -

(iv) the date on which the payment was made;

(v) the amount of the payment; and

(vi) the nature of the payment;

(b) sets out in the English language particulars of -

(i) unless subparagraph (ii) applies - the name of the person;

(ii) if the payments were received by the person in the course of a business carried on by the person - the name of the person or the business name under which the person carries on the business; and

(iii) the date on which the document was made out;

(c) is supplied by or on behalf of the person; and

(d) is obtained by or on behalf of the taxpayer at, or as soon as reasonably practicable after, the day on which the later or last of the payments was made,

then, in relation to each of the payments -

(e) the taxpayer shall be deemed to have obtained documentary evidence of the payment; and

(f) so much of the document as relates to the payment shall be deemed to be documentary evidence of the payment.

82KU(6)   [Undocumentable expense]  

Where, at, or as soon as reasonably practicable after, the time when a taxpayer incurs an expense that, by virtue of subsection (7) or (8), is an undocumentable expense -

(a) an entry setting out -

(i) except in the case of depreciation of the kind referred to in subparagraph (ii) - the particulars that would be set out in documentary evidence of the expense (other than particulars of the date on which the documentary evidence was made out);

(ii) in the case of depreciation in respect of property, being depreciation that, by virtue of subsection (7), is an undocumentable expense - particulars of the property and of the amount of the depreciation; and

(iii) particulars of the date on which the entry is made and the name of the person making the entry,

is made in the English language, by or on behalf of the taxpayer, in a diary or similar document; and

(b) the diary or similar document is signed, in relation to the entry, by the person making the entry,

then, for the purposes of this Subdivision -

(c) the taxpayer shall be deemed to have obtained documentary evidence of the expense; and

(d) so much of the diary or similar document as sets out those particulars shall be deemed to be documentary evidence of the expense.

82KU(7)   [Relevant expense not exceeding $10]  

For the purposes of subsection (6), where -

(a) a taxpayer claims as a deduction in respect of a year of income an expense (in this subsection referred to as a relevant expense ) -

(i) that was incurred by the taxpayer during the year of income; and

(ii) the amount of which does not exceed $10 or such higher amount as is prescribed for the purposes of this subparagraph; and

(b) the total of the amounts of the relevant expenses claimed by the taxpayer as deductions in respect of that year of income does not exceed $200 or such higher amount as is prescribed for the purposes of this paragraph,

the expense referred to in paragraph (a) shall be deemed to be, and always to have been, an undocumentable expense.

82KU(8)   [Expenses deemed undocumentable]  

For the purposes of subsection (6), where the Commissioner is satisfied, having regard to the nature of an expense incurred by a taxpayer, that it would be unreasonable to expect the taxpayer to have obtained documentary evidence of the expense, the expense shall be deemed to be, and always to have been, an undocumentable expense.

82KU(9)   [Documentary evidence of depreciation expenses]  

Where a taxpayer incurs an expense constituted by depreciation in respect of property and the Commissioner is satisfied that -

(a) at the time (in this subsection and subsection (10) referred to as the relevant time ) when the property was first used, or was installed ready for use, for the purpose of producing -

(i) in the case of a car - assessable income of the taxpayer; or

(ii) in any other case - salary or wages of the taxpayer,

the taxpayer did not have documentary evidence of the expense;

(b) in a case where the taxpayer did not obtain documentary evidence of the expense before the relevant time - the taxpayer did not, at the time when the taxpayer acquired the property, intend to use the property at any time for the purpose of producing assessable income, or salary or wages, as the case may be, of the taxpayer; and

(c) in a case where the taxpayer ceased before the relevant time to retain documentary evidence of the expense - the taxpayer did not, at the time when the taxpayer ceased to retain the documentary evidence, intend to use the property at any time for the purpose of producing assessable income, or salary or wages, as the case may be, of the taxpayer,

subsection (2) applies, and shall be deemed always to have applied, in relation to the expense as if a reference in that subsection to a receipt or invoice included a reference to a statement or certificate.

82KU(10)   [Exemptions]  

Where, in a case where subsection (9) applies, the Commissioner is further satisfied that -

(a) because of circumstances beyond the control of the taxpayer, it has at no time since the relevant time been reasonably practicable for the taxpayer to obtain documentary evidence of the expense; and

(b) the particulars set out in a document furnished by the taxpayer to the Commissioner, being the particulars that would have been set out in documentary evidence of the expense (other than particulars of the date on which the documentary evidence was made out), are true and correct,

paragraph 82KUA(b) or 82KW(2)(ba) , or subsection 82KZ(1) , as the case requires, and paragraphs 82KZA(1)(a) and (3)(c) and (d) , do not apply, and shall be deemed never to have applied, in relation to the expense.