The ATO has released a Taxpayer Alert TA2011/3 in respect of arrangements involving holiday travel claimed as a tax deduction.
The Taxpayer Alert describes arrangements where a taxpayer claims a deduction for expenses incurred in relation to various educational courses and seminars where the expenses have insufficient connection with the taxpayer's current income-earning activities and are private or domestic in nature. These expenses include the costs for domestic or overseas travel on a holiday activity or to a holiday destination.
Where an activity is undertaken both for income-earning purposes and for private purposes, it is necessary to apportion the expenses between the purposes.
Be aware that the ATO is currently reviewing these arrangements.
If you have any queries contact BASMAN RETURNS for more information.