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Edited version of your private ruling
Authorisation Number: 1012422730994
This edited version of your ruling will be published in the public register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
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Ruling
Subject: Managing tax affairs
Question 1
Are you entitled to a deduction for the preparation and postage costs of your overseas tax return and other filings required by law?
Answer
No
This ruling applies for the following periods:
Year ending 30 June 2013
Year ending 30 June 2016
The scheme commences on:
1 July 2012
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You paid for the preparation of your overseas tax return and other filings required by law.
You incurred postage costs associated with the lodgement of these documents.
Relevant legislative provisions
Income Tax Assessment Act 1997 25-5).
Income Tax Assessment Act 1997 sub section 995-1 (1)
Reasons for decision
Section 25-5 of the Income tax Assessment Act 1997 (ITAA 1997) deals with expenses associated with tax.
Section 25-5(1) states that a taxpayer can deduct expenditure that you incur to the extent that it is for:
(a) managing your tax affairs or
(b) complying with an obligation imposed on you by a Commonwealth law, insofar as that obligation relates to the tax affairs of an entity;
(c) the general interest charge or the short fall interest charge or
(d) (ca) a penalty under Subdivision 162-D of the GST Act;
Obtaining a valuation in accordance with section 30-212 or 31-15.
Section 995-1(1) of the ITAA 1997 defines "managing tax affairs" as affairs relating to tax.
tax means:
(a) income tax imposed by the Income Tax Act 1986, as assessed under the ITAA 1997; or
(b) income tax imposed as such by any other Act, as assessed under this Act.
The costs associated with preparing and lodging your overseas tax return and other filings required by overseas countries law are not deductible under section 25-5 of the ITAA 1997 as they are not related to the cost of managing your tax affairs, that is, affairs which relate to tax which has been or will be assessed under the ITAA 1997.
Therefore the costs you have incurred are not allowable deductions.
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