ATO Interpretative Decision

ATO ID 2002/590

Income Tax

• This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Issue

Will a receipt meet the substantiation requirements under section 900-115 of the Income Tax Assessment Act 1997 (ITAA 1997) where it does not contain a date of purchase but the taxpayer is able to provide a credit card slip which contains the date of purchase?

Decision

Yes. A receipt will meet the substantiation requirements under section 900-115 of the ITAA 1997 where it does not contain a date of purchase as it is provided by the taxpayer in conjunction with a credit card slip which contains the date of purchase.

Facts

The taxpayer purchased an item and has found that the receipt does not contain the date of purchase.

The taxpayer paid for the item by credit card and has retained the slip which includes the date and dollar value of the purchase.

The taxpayer claimed the item as a work related expense in their income tax return.

Reasons for Decision

Section 8-1 of the ITAA 1997 allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income.

In order to deduct certain losses or outgoings, section 900-10 of the ITAA 1997 provides that the taxpayer must be able to substantiate the expense. Division 900 of the ITAA 1997 contains the substantiation requirements for the following types of losses or outgoings:

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work expenses (Subdivision 900-B of the ITAA 1997).

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car expenses (Subdivision 900-C of the ITAA 1997).

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business travel expenses (Subdivision 900-D of the ITAA 1997).

Subdivision 900-E of the ITAA 1997 deals with the written evidence a taxpayer must obtain in order to claim a deduction. Subsection 900-115(2) of the ITAA 1997 provides the rules about the written evidence that must be obtained from a supplier.

The document from the supplier must be in English, unless the expense was incurred in another country in which case it can instead be in a language of that other country (subsection 900-115(4) of the ITAA 1997).

The document from the supplier must include the following information:

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the name or business name of the supplier; and

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the amount of the expense (in the currency in which it was incurred); and

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the nature of the goods or services; and

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the day the expense was incurred; and

•

the day it is made out.

There are 2 exceptions to these requirements contained in subsection 900-115(3) of the ITAA 1997. One of these exceptions provides that if the supplier's document does not show the day the expense was incurred the taxpayer may use a bank statement or other reasonable, independent evidence that shows when it was paid (paragraph 900-115(3)(a) of the ITAA 1997).

The supplier's document did not show the date the purchase was made and would therefore fail to meet the requirements of subsection 900-115(2) of the ITAA 1997.

However the taxpayer is able to provide the credit card slip which provides the date of purchase. This evidence is both reasonable and independent and meets the requirements under paragraph 900-115(3)(a) of the ITAA 1997.

The receipt provided by the taxpayer, in conjunction with the credit card slip, will therefore meet the substantiation requirements under section 900-115 of the ITAA 1997.

Amendment History

Year of income:  Year ending 30 June 2002

Legislative References:
Income Tax Assessment Act 1997
   section 8-1
   Division 900
   section 900-10
   Subdivision 900-B
   Subdivision 900-C
   Subdivision 900-D
   Subdivision 900-E
   section 900-115
   subsection 900-115(2)
   subsection 900-115(3)
   paragraph 900-115(3)(a)
   subsection 900-115(4)

Keywords
Car expenses
Deductions & expenses
Documentation & records
Motor vehicle expenses
Receipts
Substantiation
Work related expenses

Business Line:  Small Business/Individual Taxpayers

Date of publication:  31 May 2002

ISSN: 1445-2782