- Discussion on the deductibility of costs incurred to ensure adequate social distancing could be clarified
- One of the examples should be enhanced to take into account FBT
This statement considers whether a business may claim an income tax deduction for costs it incurs due to the COVID-19 pandemic. The Commissioner is aware that there has been some uncertainty about whether COVID-19-related costs incurred by businesses are deductible.
In CA ANZ’s view:
- It is helpful that a distinction has been made between this draft statement and Interpretation Statement IS 21/04, "Income tax and GST - deductions for businesses disrupted by the COVID-19 pandemic".
- CA ANZ supports the principles approach adopted in the draft statement.
CA ANZ recommended:
- The discussion regarding the deductibility of costs incurred to ensure adequate social distancing be clarified.
- One of the examples be enhanced to take into account possible exclusions from the FBT rules