ATO Interpretative Decision
ATO ID 2001/31 (Withdrawn)
Income Tax
Deductions and expenses: Uniform (Shoes and Socks)FOI status: may be released
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This ATO ID is withdrawn as the interpretative issue is covered in TD 1999/62 and TR 97/12This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Whether expenditure on shoes and socks that form part of a compulsory work uniform is an allowable deduction under Income Tax Assessment Act 1997 section 8-1.
Decision
The shoes and socks are not considered to form a distinctive part of the taxpayer's compulsory uniform and the expenditure incurred in purchasing these items is not deductible pursuant to Income Tax Assessment Act 1997 section 8-1.
Facts
The taxpayer is required to wear a uniform when performing work duties. Shirts, jacket and pants are supplied by the employer, with shoes and socks to be provided by the employees. Shoes are required to be black leather and are to be worn with black socks. If staff do not wear the uniform as specified by the employer, the staff member is sent home and is subject to disciplinary action.
Reasons For Decision
Expenditure on shoes and socks may be deductible pursuant to Income Tax Assessment Act 1997 section 8-1 where they form a distinctive part of a compulsory uniform set out in the employer's expressed uniform policy and guidelines (Taxation Ruling TR 96/16 Income tax: work related expenses: deductibility of expenses on compulsory uniform shoes, socks and stockings.).
The employer has not stipulated the characteristics which qualify the shoes and socks as a distinctive part of the compulsory uniform, such as design, style or type of footwear as required by Taxation Ruling TR 96/16.
A uniform only includes shoes and socks where the employer's express uniform/wardrobe guidelines stipulate the characteristics which qualify each item as an integral part of the compulsory uniform. (Taxation Ruling TR 97/12 Income tax and fringe benefits tax: work related expenses: deductibility of expenses on clothing, uniform and footwear.).
Consequently, the shoes and socks are not considered to form a distinctive part of the taxpayer's compulsory uniform and the expenditure incurred in purchasing these items is not deductible pursuant to Income Tax Assessment Act 1997 section 8-1.
Date of decision: 4 December 1997
Legislative References:
Income Tax Assessment Act 1997
section 8-1
Case References:
Mansfield v FC of T
96 ATC 4001
(1996) 31 ATR 367
Related Public Rulings (including Determinations)
TR 96/16
TR 97/12
TD 1999/62
Keywords
Corporate and compulsory clothing expenses
Footwear
Clothing expenses
ISSN: 1445-2782
| Date: | Version: | |
| 4 December 1997 | Original statement | |
| You are here | 3 March 2006 | Archived |
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