The Australian Taxation Office now uses sophisticated data analytics to assess a range of deductions and claims.
Taxpayers must follow three golden rules when making a deduction:
- the taxpayer must have spent the money (and not been reimbursed);
- the claim must be directly related to earning the taxpayer’s income;
- they must keep records to prove it; and
- taxpayers may receive a “please explain” or have a claim disallowed.