Edited version of private advice

Authorisation Number: 1051795060566

Date of advice: 08 January 2021

Ruling

Subject: Other work-related expenses

Question

Can I claim a deduction for tuition fees paid to complete the M&As (Mergers and Acquisitions) and Corporate Strategy Programme (Programme) studied at Institution A?

Answer

Yes.

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 earning exempt income.

Based on the information provided, the Programme maintains or increases the knowledge, capabilities or skills you need to earn your assessable income. Therefore, the tuition fee is considered an allowable deduction under Section 8-1 of the ITAA 1997.

The tuition fee incurred to undertake the Programme may be claimed as a deduction at "Other work-related expenses". Further information can be found by entering Quick Code reference QC 61643 into the search function of our website ato.gov.au.

This ruling applies for the following period:

Year ending 30 June 2021

The scheme commences on:

1 July 2020

Relevant facts and circumstances

You plan on studying the Programme with Institution A virtually from XX February to XX February 20XX.

The tuition fee for the Programme will cost $XX,XXX.

You are not being reimbursed for the tuition fee.

The Programme covers the following content:

•   Corporate Strategy

•   Creating and Capturing Value in M&As

•   Finance Valuation

•   Acquisition Programmes, M&A of Technology and Managing Post-Merger Integration

•   M&A Deal Structuring and Private Equity

•   Managing Cross-Cultural Integration

•   Managing Alliances and Joint-Ventures

•   Virtual Networking/Experience Sharing and one-on-one coaching sessions with faculty

On XX/XX/20XX you joined Company A's Board.

You provided a copy of the Company Directors Course Certificate.

In addition to this role, you are also employed with Company B, the managing company of Company A. You are remunerated for your Company A Board role through your Company B wages.

As a Board member it is your obligation to look after the interests of shareholders to generate a return on their investment. This involves merger and acquisitions that could benefit all shareholders. Your duties include approving or denying potential mergers and acquisitions. The Programme will improve your skills and competences to act in the best interest of shareholders.

The Chairman of Company A's Board provided a letter dated XX/XX/20XX supporting the connection between the Programme to your responsibilities and duties as a member of Company A's Board.

The letter says the Programme is required to increase your knowledge and skill base utilised in completion of your Board duties and would be instrumental in the development of your M&As and corporate strategy knowledge.

The letter says in addition to the general legal responsibilities of a company Director, you have additional responsibilities.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1

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