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Incorrectly claiming deductions will attract our attention.

Last updated 23 August 2022

Situations that attract our attention include:

  • incorrectly claiming deductions (see income and deductions for business) that decrease taxable income including from    
    • failing to add back non-deductible expenses in the reconciliation statement
    • inappropriately valuing closing stock at below cost or replacement value
  • payments made to related parties for services that either  
    • were not provided
    • had no connection with earning assessable income
  • undefined expenses
  • using the trading stock election rules to lower the valuation of closing stock.

For more information on trading stock, see TR 93/23 Valuation of trading stock subject to obsolescence or other special circumstances.