A family trip to a tropical island was among failed tax claims made. Photo: jcob nasyr/Unsplash
As the End of Financial Year (EOFY), and tax time, approaches, Chartered Accountants ANZ (or CA ANZ) asked its members for the cheekiest claims made by clients – and there are some beauties.
CA ANZ Tax Leader Susan Franks says a survey of almost 180 Australian tax experts uncovered the lengths to which some Australians will try to get a tax break.
“Our members have shared with us their clients’ cheekiest claims and the results are revealing,” she says.
She also points out that the Australian Tax Office “will not be laughing” at the claims.
“One respondent said their individual client was claiming monthly salon haircuts on the basis that their hair grows during business hours,” she says.
“… one tried to claim a family trip to a tropical island was related to their earthmoving business.
“Another claimed a luxury yacht as a work expense because they might have some business to do on the islands.”
Franks says there were “many dubious claims” related to health, wellness and personal aesthetic including one for the cost of a gym membership as the individual needed to be strong and fit to renovate their rental property.
“Another related to a Pilates reformer machine purchased to help an office worker who had a sore back,” she says.
Other CA ANZ survey respondents say their clients, both individuals and businesses, try to claim vet and food bills for dogs to protect them even though they work in an office; a pool, school fees, and an engagement ring.
“Chartered accountants are experts. They work hard during tax time to make sure their clients’ tax returns are spot-on and follow the rules, which means there are less mistakes going to the ATO,” Franks says.
“We understand that some Australians might be tempted to push the boundaries, but let’s avoid making dubious claims this year.”
Chartered Accountants Australia and New Zealand represents nearly 140,000 financial professionals.
