Tax Ruling
In a recent decision, the Administrative Review Tribunal (‘ART’) upheld a truck driver’s claim for meal expenses, notwithstanding that those expenses had not been fully substantiated.
The taxpayer was employed as a long-haul truck driver in Western Australia. He was away from home for considerable periods each year.
The taxpayer sought a deduction for meal expenses of $32,782 in the 2021 income year, apparently calculated by multiplying the number of days he was away from home (310) by the maximum reasonable daily allowance under Taxation Determination TD 2020/5.
The ATO only allowed the taxpayer a deduction for meal expenses of $5,890 based on a review of his logbook, fatigue diary and bank statements. This was an average of $19 per day multiplied by 310.
The ART found on the balance of probabilities that the taxpayer incurred the claimed expenditure, and it found that the taxpayer had met his burden of proof.
In this regard, the ART determined that the taxpayer incurred the disputed expenses in gaining or producing his assessable income, and it did not agree with the ATO that there was an insufficient linkage between the expenditure on bank statements and the taxpayer’s work.
The ART held that the exception to the substantiation provisions applied to the taxpayer, as:
- A travel allowance was paid by the taxpayer’s employer which covered the expenses;
- The taxpayer incurred the expenditure in gaining or producing his assessable income; and
- The expenditure fell within the ATO’s reasonable travel amounts set out in TD 2020/5.
The ART accordingly allowed the taxpayer’s claim for travel expenses in full.
