ATO Challenges Tribunal’s Ruling on Work-Related Deductions – Shaw v FC of T (June 25 Tax Update)

Relevant For:

Employees and self-employed individuals claiming work-related expenses, particularly those in transport or shift-based industries.

Key Points:

• A truck driver successfully claimed meal expenses based on bank statements, with the ART accepting this as sufficient linkage to work.
• The Tribunal applied exceptions under sections 900-50 and 900-200 of the ITAA 1997, easing substantiation rules.
• The ATO has issued an interim decision impact statement and is appealing to the Federal Court.
• A successful ATO appeal may tighten substantiation standards.
• Taxpayers should continue to maintain strong records while the appeal outcome remains pending.

Full Article:

The ATO has released an interim decision impact statement following a significant ruling in