The Taxation & Charities Review Authority confirms the Commissioner’s denial of deductions was correct

L (the taxpayer) sought deductions for education expenses, motor vehicle expenses, and home office expenses. The taxpayer also challenged the Commissioner’s imposition of a shortfall penalty for not taking reasonable care.

The Authority denied the deductions sought on the basis that the deductions were not incurred as part of the taxpayer’s business, the taxpayer had failed to keep adequate records or otherwise show the deductions had been incurred, or the deductions had been incurred prior to the taxpayer’s registration for GST. The Authority agreed that the taxpayer had failed to take reasonable care in taking the tax positions.