Copley and Commissioner of Taxation (Taxation)

This matter concerned an application for review of an objection decision by the Commissioner of Taxation regarding deductions claimed by the applicant, Mr Copley, for the financial years ending 30 June 2018, 30 June 2019, and 30 June 2020. The applicant sought to deduct a total of $151,189.55 across these years, primarily for work-related car expenses and other work-related expenses, with smaller amounts claimed for gifts and donations. The reviewable decision affirmed by the Tribunal was the Commissioner's Objection Decision, which led to amended assessments being issued.

The central legal issue before the Tribunal was whether the disputed expenses claimed by Mr Copley were deductible under section 8-1 of the *Income Tax Assessment Act 1997* (Cth). This required the Tribunal to consider whether the expenses were incurred in gaining or producing assessable income, whether they were of a capital, private, or domestic nature (which would preclude their deduction), and crucially, whether Mr Copley had satisfied the substantiation requirements mandated by Divisions 28 and 900 of the *Income Tax Assessment Act 1997* (Cth). The Tribunal also had to determine if Mr Copley had met the burden of proof under section 14ZZK of the *Taxation Administration Act 1953* (Cth) to demonstrate that the Commissioner's amended assessments were excessive or incorrect.

The Tribunal found that Mr Copley was unable to adequately substantiate many of the claimed expenses, relying primarily on bank statements without sufficient supporting receipts or tax invoices. Furthermore, the specificity of the vehicle logbook was found to be lacking. This inability to substantiate expenses made it difficult to assess whether they were incurred in the course of gaining or producing assessable income, and raised questions about whether some expenses were of a private or domestic nature. Consequently, Mr Copley failed to meet the evidentiary burden imposed by section 14ZZK of the *Taxation Administration Act 1953* (Cth). The Tribunal affirmed the reviewable decision.