MEDIA RELEASE (AU)

As tax time approaches, Chartered Accountants ANZ (CA ANZ) has asked its members for the most unusual claims made by clients, and the answers would not be amusing to the Australian Tax Office (ATO).

CA ANZ has surveyed nearly 180 Australian tax experts to better understand how they are helping clients prepare and lodge their tax returns, with the full results to be released this month.

CA ANZ Tax Leader Susan Franks said the survey has also uncovered the extent to which some Australians might stretch the truth to try to get a tax break.

“Our members have shared with us their clients’ cheekiest claims, and the results are revealing. But Chartered Accountants discourage people from making fraudulent claims because the ATO will not be laughing,” said Ms Franks.

“One respondent said their individual client was claiming monthly salon haircuts, on the basis that their hair grows during business hours.

“There were many dubious claims related to health, wellness and personal aesthetic, including one for the cost of a gym membership, as the individual needed to be strong and fit to renovate their rental property. Another related to a Pilates reformer machine purchased to help an office worker who had a sore back.

“We also noticed a trend of big-ticket luxury purchases passed off as business and work expenses, including one who tried to claim a family trip to a tropical island was related to their earthmoving business,” said Ms Franks.

“Another claimed a luxury yacht as a work expense – because they might have some business to do on the islands.”

Other respondents said they had clients, both individuals and businesses, try to claim:

• vet and food bills for pet dogs to protect them even though they work in an office
• a pool
• school fees
• an engagement ring

“Chartered Accountants are experts. They work hard during tax time to make sure their clients’ tax returns are spot-on and follow the rules, which means there are less mistakes going to the ATO.

"We understand that some Australians might be tempted to push the boundaries, but let's avoid making dubious claims this year."