Creative tax deductions

An Australian man has been unsuccessful in his attempt to claim a deduction of AUD$5,388 in relation to a salary that he paid his son for secretarial services.

The deduction was denied on the grounds that his son was seven and a half years old and did not in fact provide secretarial services to his father. The judgement found that the man’s son:

“did virtually nothing for his father by way of secretarial assistance or anything of that nature. Indeed, the evidence established no more than that the son sometimes ran upstairs to the study when the phone was ringing, answered the phone and then handed it to his father.”

The Judge also made the comment that it was quite likely the son was paid some modest amounts of pocket money, however, those amounts would have been completely unconnected with the ‘minimal’ work that he did for his father.

Published Winter 2016

Serious about your success?