J.A.P TAXATION

Q: When can I claim travel from home to workplace? Answer: Travel from home to workplace can be deductible only when the employee is “on call” and his/her work commences before leaving home. But the travel back to home will not be deductible because then the employee just worked at his/her workplace like any normal employee and then returned to home. If a worker has to travel to his work more than once a day but his/her work commences at reaching his place of work, then it is not deductible travel Example: 1 – Deductible: In court case of FCT vs Collings, the employee was an IT consultant whose employment required her to be on call 24 hours a day supervising a major conversion of computer facilities that her employer provided to the clients. It was common for her to receive calls at home and to give advice to workers at the office anytime to a problem occurred. If she was unable to resolve the problem over the phone or through her computer at home, then she woul...

You need to keep in mind the following rules in addition to the information required to be completed in the logbook Rules for Log book Circumstance Rule First year of using logbook You must keep a logbook during this income year. Logbook must be done for 12 weeks of the first income year otherwise you cannot use the logbook for this year unless next point applies. Using the car for less than 12 weeks before the end of the income year You can continue to keep the logbook in the following income year so that your logbook covers the required 12 weeks. Keeping logbooks for two or more cars The logbook for each car must cover the same period.

Question : If the car is owned by 2 persons then how can they claim car expenses? Answer: Practice Statement Law Administration PS LA 1999/2 They can use one of the two calculation methods for income years from 1 July 2015: · cents per kilometre · log book. Each taxpayer should use only one method in any one income year in relation to a specific vehicle. However, each of the joint owners can use a different method to calculate their deductions if they wish. Cents per KM: Each joint owner or joint lessee can claim a maximum deduction of 5,000 kilometres for each income year. That limit applies to a taxpayer in relation to a particular car, not to the car itself; so, if each of the joint owners uses the car for separate income producing purposes, they can each claim up to 5,000 kilometres. Logbook method: If one of them is using the logbook method, the logbook must be prepared to show total KMs travelled by both the owners and the KMs travelled by the p...