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Creative Accounting... Man Claims Son, Cheese and Crayons as Tax Deductions

Discussion in 'Accounting & Tax' started by House, 5th Feb, 2016.

  1. House

    House Well-Known Member Premium Member

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    :rolleyes:

    image.jpeg
     
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  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Pretty sure @Terry_w has depreciated a dog.

    Cheers

    Jamie
     
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  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    It was used to guard the office. An effective life of 10 years too
     
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  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    ....and here I am paying for my dogs expenses out of personal money like a sucker :-(

    I'm sure Bailey the pug would do a tremendous job protecting my office.
     
  5. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    I could not read how much his penalties and interest were.
     
  6. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    My wife asked the accountant if we could claim our Labrador. I don't think so...
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Penalties yet to be determined.

    I should clarify that i was joking about the dog.
     
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  8. Perthguy

    Perthguy Well-Known Member

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    "The Commissioner is considering the penalty that should be imposed and has set aside 28 days before determining the action."

    It's not creative accounting, it's tax fraud.
     
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  9. York

    York Finance Broker Business Member

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    10 dog years or......?
     
  10. House

    House Well-Known Member Premium Member

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    Haha that was the first thing that came to mind. One thing I remember from reading PI.com was that quote from many years ago... Not sure why it stuck and nothing else did!

    The kid thing is legit though, isn't it?
     
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  11. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    I was thinking about posting a comment that he may do the bulk of the work....Oh I just did. ;)
     
  12. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Accelerated depreciation method !!
     
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  13. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Reckless or fraud ?? I bet the Commissioner argues fraud and evasion and lets the taxpayer fight it.
     
  14. Perthguy

    Perthguy Well-Known Member

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    I'm using the layman concept of "fraud" meaning intentional and dishonest behaviour with the aim of obtaining a financial benefit. I am sure there is a technically correct name for the offence committed. The ATO has an umbrella term "tax crime". That's not an official term either I'm sure.

    https://www.ato.gov.au/General/the-fight-against-tax-crime/tax-crime-explained/

    It's not creative accounting, it's tax crime :)
     
  15. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    It's a she actually. Tessie the Wonder Dog...

    We did employ her as a Lab Tester for a while. She was basically investigating the durability of various household items, investigating why they self destruct, seemingly by magic.

    I decided not to bring her in when I moved into the office. I was having all sorts of staffing problems. Drinking out of the toilet, slobbering on clients. The usual staff issues...

    The upside was she worked for peanuts (and smakos and other treats).
     
    Last edited: 5th Feb, 2016
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  16. MikeLivingTheDream

    MikeLivingTheDream BCOM MCOM MTAX CPA CTA Registered Tax Agent

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    If you ran a company and met the PSB tests and cheese was consumed at a morning tea or light lunch on the company business premises it may be deductible and may also be free from FBT.

    Crayons may also be deductible if they were used as part of a company brainstorming session and used to write on a large sheet of paper.

    So same claims different situation.
     
    Last edited: 5th Feb, 2016
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  17. Xenia

    Xenia Adelaide Property Manager Business Member

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    I'm pretty sure my brother and I were tax deductions for our dad since we were born. Nothing new there.

    As for my dog - she is too stupid. Lol
    Kids love her though.
     
  18. moyjos

    moyjos Well-Known Member

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    My parents also claimed our dogs as "watchdogs" in the 70's. (I grew up in homes attached to shops) The joke that @Terry_w made about a 10year life span may have been a thing back then, because our second "pet" was bought when our old girl was around 9 or 10.

    Hmmm must ask Mum about that one