Business | Taxation example: Workplace is stimulated-crazy, domestic violence, migration! Is the migration fee tax deductible?
It is said that in the capital Canberra, there is a civil servant named Paul McKenzie who served the Ministry of Defense. Between 2012 and 2015, he and a colleague had a conflict at work. Since then, they have been depressed and eventually led to a mental disorder. At the end of 2014, he couldn't control his emotions and committed domestic violence against his family. As a result, he was arrested by the police and sent to court. In March 2015, the court withdrew the prosecution against Mr. Mak after investigation, arguing that his behavior was caused by a mental disorder. The court also ruled that Mr. Mak needs to be looked after by his uncle in Perth.
In order to move to Perth, Mr. Mai incurred a cost of $8,598.82 (including air tickets, car rental fees, and moving expenses). He unceremoniously took these expenses as work-related expenses and included them in his 2015 and 2016 fiscal year personal taxes to deduct his salary income. In 2017, the tax bureau began to review Mr. Mak’s personal tax, but it turned out that he disagreed with these deductions and recalculated his tax payment. In February 2018, Mr. Mak formally appealed to the arbitration court and demanded that the court give him justice.
Mr. Mak set out the facts confidently: work-dispute-go Ape-Domestic violence- Judgment-Relocation -cost. Of course the culprit is work. Doesn’t it mean that work-related expenses are tax deductible?
The tax bureau rightly retorted-These expenses are private in nature and of course not tax deductible.
● Expenses related to earning taxable income
● Expenses related to doing business to earn taxable profits
But these expenses cannot be
● Capital expenditure
● Private expenses
● Expenses related to earning tax-free income
● Expenses that the law clearly stipulates that cannot be deducted, such as eating, drinking, and fines