Taxation Determination

TD 93/97

Income tax: if a taxpayer claims a deduction for self education expenses under subsection 51(1), is the amount of $250 spent, but disallowed as a deduction under section 82A, excluded from the substantiation provisions?

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FOI status:

may be releasedFOI number: I 1215049

1. Yes. The amount of $250 spent on self education but disallowed as a deduction under s82A is not required to be substantiated by the taxpayer.

2. Under the substantiation provisions, a taxpayer is only required to retain documentary evidence to substantiate work related expenses claimed as allowable deductions.

3. Even though the taxpayer is not required to substantiate this amount, the onus of proof still remains on the taxpayer to show (rather than substantiate) how this amount was expended.

Example:

A taxpayer spends $1500 on self education. An amount of $250 is disallowed as a deduction under s82A. If the taxpayer claims $1250 as self education expenses, he/she must be able to substantiate $1250 with the necessary documentary evidence. Whilst there is no requirements to substantiate the amount of $250, the taxpayer must be able to provide a detailed explanation in regards to this expenditure.

Commissioner of Taxation
3/6/93

Previously issued as Draft TD93/D19

References

ATO references:
NO UMG0042

Related Rulings/Determinations:

TR928

Subject References:
onus of proof;
self education;
substantiation

Legislative References:
ITAA 51(1);
ITAA 82A;
ITAA 82KZ;
TAA 14ZZK(b)(i)