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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1013052546661

Date of advice: 21 July 2016

Ruling

Subject: Refreshments

Question

Are you entitled to a deduction for the cost of light refreshments while providing ride-sourcing services?

Answer

No.

This ruling applies for the following periods:

Year ended 30 June 2016

Year ended 30 June 2017

Year ended 30 June 2018

The scheme commences on:

1 July 2015

Relevant facts and circumstances

You derive income from ride-sourcing services.

To ensure comfort, and to maintain focus on the road in the car during the working day, you will purchase a coffee during the day.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 8-1

Reasons for decision

Section 8-1 of the Income Tax Assessment Act 1997 (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.

Expenditure on the daily necessities of life (e.g., food and drink) are generally a private expense and are not incurred in gaining or producing assessable income.

The issue of the deductibility of meals was considered by the Full Federal Court in FC of T v. Cooper (1991) 21 ATR 1616; 91 ATC 4396 where Hill J stated (ATR at page 1638; ATC at page 4415)

The reference to 'expenditure incurred while away from home' is a reference to the situation where a taxpayer must travel away from home at least overnight for the purposes of their employment. Where a taxpayer is required to travel for work purposes the cost of meals may be deductible.

The taxpayer must however be travelling for work purposes. For example, an office worker attending an interstate conference. The taxpayer cannot be considered to be travelling for work as they continue to perform their employment duties at their ordinary place of work.

You cannot be considered to be travelling for work as you are completing your ride-sourcing services. Your circumstances do not change the essential character of the expense as private or domestic in nature.

The expenditure incurred by you on your refreshments is not incurred in gaining or producing assessable income or necessarily incurred in carrying on a business, but is private or domestic in nature. The cost of your portion of the food or drink consumed by you is therefore not deductible under section 8-1 of the ITAA 1997.


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