| Disclaimer This edited version has been archived due to the length of time since original publication.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 your private ruling
Authorisation Number: 1012275443473
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. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.
Ruling
Subject: Visa expenses
Question
Are you entitled to a deduction for the cost of obtaining a visa?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2012
The scheme commenced on
1 July 2011
Relevant facts
You lodged an application for a visa in late 2011. A visa was granted for a six year period from early 2012.
You are employed since early 2012.
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 except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income.
Expenses are considered to have been incurred in gaining or producing assessable income where they are related to the production of assessable income.
Expenses incurred to obtain a visa are not expenses incurred in the production of assessable income. The expenses are incurred to place a taxpayer in a position to be able to earn income, rather than in the completion of their work related duties.
Alternatively, the predominant purpose of obtaining the visa is to allow a person to remain and work legally in Australia rather than earn assessable income. Therefore the expense of obtaining the visa is considered private or domestic in nature.
As the expenses incurred in obtaining the visa are not incurred in gaining or producing assessable income or are private or domestic in nature, they are not tax deductible.