Income tax: are joining fees or annual fees paid for a 'consumer loyalty program' an allowable deduction?
Please note that the PDF version is the authorised version of this draft ruling.This document has been finalised by TD 1999/35.
FOI status:draft only - for comment
|Draft Taxation Determinations (DTDs) present the preliminary, though considered, views of the Australian Taxation Office. DTDs should not be relied on; only final Taxation Determinations represent authoritative statements by the Australian Taxation Office.|
1. No, except when paid by an employer as a cost of employing a person, as there is no nexus between the expenditure and the derivation of assessable income.
2. A 'consumer loyalty program' is defined in Taxation Ruling TR 98/D9 'Income tax and fringe benefits tax: flight rewards received under frequent flyer and other similar consumer loyalty programs'.
3. If you wish to comment on this draft Determination, please send your comments by 21 August 1998 to:
|Contact officer details have been removed following publication of the final determination.|
Commissioner of Taxation
8 July 1998
NO NAT 98/6907-7
BO BO 97/5833-0
deductions and expenses
frequent flyer benefits
non cash benefits