Reid and Commissioner of Taxation (Taxation)

This matter concerned an application by Mr Reid to review a decision of the Commissioner of Taxation disallowing certain work-related deductions claimed for the income years ended 30 June 2012, 30 June 2014, and 30 June 2015, partly allowing an objection for the income year ended 30 June 2016, and refusing to remit administrative penalties. The Administrative Appeals Tribunal was required to determine whether Mr Reid was entitled to deductions for work-related car expenses and other work-related expenses, and whether he was liable for administrative penalties and if those penalties should be remitted.

The Tribunal considered whether Mr Reid had substantiated his claims for work-related car expenses, home office running costs, telephone and internet costs, stationery, and the purchase of newspapers and journals. The Tribunal also had to determine if Mr Reid had made false or misleading statements to the Commissioner, rendering him liable for administrative penalties under the Taxation Administration Act 1953 (Cth), and if there were any grounds for remission of these penalties.

The Tribunal found that Mr Reid had not kept a logbook in accordance with section 28-125(2) of the Income Tax Assessment Act 1997 (Cth) for his car expenses, and therefore the deduction allowed at audit was appropriate. Claims for home office expenses were disallowed as Mr Reid was not required to work from home, and other claims for telephone and internet costs were not sufficiently substantiated. While some stationery expenses were allowed for the income year ended 30 June 2016, claims for newspapers and journals were not substantiated. The Tribunal concluded that Mr Reid was liable for administrative penalties due to false or misleading statements and found no grounds for remission.

The Tribunal affirmed the Commissioner's reviewable decision.