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Edited version of private ruling
Authorisation Number: 1011652326034
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Ruling
Subject: Work related expenses
Are you entitled to a deduction for entrance tickets to performances which assist you in your work?
Yes.
This ruling applies for the following period
30 June 2010
The scheme commenced on
1 July 2009
Relevant facts
You attend concerts to enhance your skills and to provide information used in your professional work.
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.
A number of court decisions have determined that to satisfy the tests in section 8-1 of the ITAA 1997:
· it must have the essential character of an outgoing incurred in gaining assessable income that is, be an income producing expense (Lunney v. Federal Commissioner of Taxation (1958) 100 CLR 478; (1958) 11 ATD 404; (1958) 7 ATR 166)
· there must be a nexus between the outgoing and the assessable income so the outgoing is incidental and relevant to the gaining of assessable income (Ronpibon Tin N.L.Tongkah Compound N.L. v. Federal Commissioner of Taxation (1949) 78 CLR 47; (1949) 8 ATD 431; (1949) 4 AITR 236)
· it is necessary to determine the connection between the particular outgoing and the operations or activities by which the taxpayer most directly gains or produces his or her assessable income (Charles Moore & Co (WA) Pty Ltd v. Federal Commissioner of Taxation (1956) 95 CLR 344; (1956) 11 ATD 147; (1956) 6 AITR 379), and
· its essential character (or nature) must not be of a capital, private or domestic nature (Federal Commissioner of Taxation v. Cooper (1991) 29 FCR 177; 91 ATC 4396; (1991) 21 ATR 1616).
In your case, you use the information acquired from the concerts in your work.
You are able to claim a work related deduction for the cost of the concert tickets during the 2009-10 income year.