| Disclaimer This edited version has been archived due to the length of time since original publication.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 written advice
Authorisation Number: 1051327788759
Date of advice: 17 January 2018
Ruling
Subject: Deductibility – theft by a person other than an employee
Question
Is the taxpayer eligible to claim a deduction for the loss of theft by a person other than an employee during the financial years ending 30 June 2017 and 30 June 2018 under section 25-45 of the Income Tax Assessment Act 1997 (ITAA 1997) when you lodge the tax returns?
Answer
Yes
Having considered your circumstances and the relevant factors, you are eligible to claim a deduction for loss of theft under section 25-45 of the ITAA 1997. Further information on deductibility can be found on our legal database at our website ato.gov.au and entering ATO ID 2001/318 into the search bar.
This ruling applies for the following period:
30 June 2018
The scheme commences on:
1 July 2016
Relevant facts and circumstances
You are a company and engaged the services of a person other than an employee to assist you with your taxation obligations.
This person assisted you with your business affairs for over 20 years.
You gave them access to your bank accounts and other company matters in order to manage the payment of wages and expenses.
In 20XX you discovered money was being taken from your bank accounts.
You contacted your bank to identify where this money was going.
The bank provided you with an itemised list of these transactions showing this money was being deposited into an account associated to this person since 20XX.
During the financial years of 2017 and 2018, an approximate total in excess of $100,000.00 had been withdrawn from your bank account for their own financial gain.
The relevant amounts have been included in your assessable income.
You no longer engaged the services of this person as this has led to other consequences for you to deal with.
You reported this matter to the authorities in 20XX and this is still ongoing.
It is likely you will lodge an insurance claim.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1
Income Tax Assessment Act 1997 section 25-45