Flabbergasted

Discussion in 'Accounting & Tax' started by Tink, 16th Feb, 2020.

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  1. Tink

    Tink Well-Known Member

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    I was chatting with a friend who said their husband claimed his watch as a tax deduction

    He works in mining and needs to know what time it is for meetings, or when a blast is on etc, he claims a proportion of it

    She mentioned some other items which ive forgotten I think I was thrown on the watch issue, id never thought toclaim such, or even if it was possible
     
  2. Spad

    Spad Well-Known Member

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    Hope it was a rolex hahaha
     
  3. Archaon

    Archaon Well-Known Member

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  4. jaydee

    jaydee Well-Known Member

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    I think you a little harsh .......

    ......... the watch needs to be pressure rated to 300m to resist blasts with a corrosive resistant material (gold) and perhaps with a quick release band of soft anti corrosive metal and also accurate to 1/1000th second so as not to compromise the blasting timetable, shift start time or the scheduled morning and afternoon smoko breaks and knock off time .........oh and Rolex for quality assurance and reliability.

    why would you think this would not be deductible?
     
  5. Archaon

    Archaon Well-Known Member

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    People can claim whatever they like it's whether it passes muster at the ATO.
     
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  6. marmot

    marmot Well-Known Member

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    I used to work with a sparky up north that would bring a little toolbox home every time , with some tools in it , made of plastic and about the size of a small tackle box , it was so he could claim a deduction on driving to and from the airport every week.
    FIFO miners love their tax deductions.
     
  7. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    If the ATO were to check and confirm the necessity of bringing "heavy tools" in this manner he may encounter a problem. The employer may say - We provide all tools for workplace safety purposes and the employee has no requirements (and may even be prohibited from) bringing own tools to site. The ATO often confirm these things directly.
     
  8. Bunbury

    Bunbury Well-Known Member

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    If it is a smart watch then it would definitely have 'special characteristics that you use for work'.
     
  9. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Not really. The watch is one element. The key issue is what work use requirement supports the needs for a watch and its functions. Mines dont blast hoping all employees have a watch. They have a process involving sirens etc. A watch for timing meetings etc may lack the special requirements.

    The depreciation of the watch and adjustment for private use would mean any deduction is minor to be honest.

    This is an example of a watch that may be more likely to have a work related need in a mine. But it seems a workplace device not one for a sole miner to own. : https://www.miningmagazine.com/innovation/news/1262606/partners-launch-minesafe-smartwatch
     
  10. Redwing

    Redwing Well-Known Member

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    I worked with a guy who claimed some of his fishing gear as a trainer for crane crews, his point of view was that he needed the rod to explain boom movements in the classroom

    Lifting and Rigging: What are Cranes and what types of Cranes exist

    A creative professional is someone doing their tax returns :D
     
  11. Ross Forrester

    Ross Forrester Well-Known Member

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    A watch is private in nature.

    if you were a deep sea diver and you needed to buy a watch rated for extreme depth then you might get away with it. Otherwise no.

    There are better tax strategies around than claiming a watch. Focus on the big dollar stuff.
     
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  12. Redwing

    Redwing Well-Known Member

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    You would think if the mine requires you to have a specific watch, they would pay for it ;)
     
  13. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Being creative is NOT the key. He was innovative and the teaching aids if a fishing rod assists him to fulfil his job. He had expenses necessarily incurred. I would argue that it could also be 100% non-deductible if he failed to satisfy the substantiation rules.
     
  14. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Its possible the watch could even be prohibited on site. I once had a taxpayer who worked at a oil refinery. They argued the needed to use their mobile and claim a % of use and calls. The ATO checked with the employer who advised mobile phones are prohibited on the worksite for safety reasons. The deduction was denied
     
  15. Redwing

    Redwing Well-Known Member

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    I would've thought similar, but with Australia's income tax system based on self-assessment you will always get some strange ones

    Agreed

    I read somewhere it's a national pastime for Aussies trying to turn private expenditure into tax deductible expenses

    <starts searching web>

    It was probably this or something similar

    https://www.perthnow.com.au/busines...lian-taxation-offices-hit-list-ng-b881240154z

    Then again, they are probably just trying to emulate their employers :D

    How 710 companies got away with not paying a single cent in tax