| Disclaimer This edited version has been archived due to the length of time since original publication.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. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private ruling
Authorisation Number: 1011718734458
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.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.
Ruling
Subject: Deductions for expenses
Question and Answer
Are you entitled to a deduction for expenses incurred gaining a Police Check?
No.
This ruling applies for the following period
1 July 2007 to 30 June 2008
Relevant facts and circumstances
Your employer required you to complete a police check after you commenced work.
You incurred costs to have the check completed and want to claim the expense as a deduction.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 1997 allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income, or necessarily incurred in carrying on a business for the purpose of gaining or producing assessable income, except where the outgoings are of a capital, private or domestic nature.
Taxation Ruling TR 95/14, paragraph 34 states:
In Cooper's case, Hill J said (FCR at 200; ATC at 4414; ATR at 1636):
'...the fact that the employee is required, as a term of his employment, to incur a particular expenditure does not convert expenditure that is not incurred in the course of the income- producing operations into a deductible outgoing.'
A deduction is not allowable for the cost of obtaining police clearance certificates.
Although the police clearance certificate may be necessary for employment in your current area of work, the expense is an outgoing that prefaces the earning of assessable income. It is not an expense incurred in the course of gaining assessable income.