Tribunal finds taxpayer partially entitled to input tax credits

In Ryan and Commissioner of Taxation [2014] AATA 818 the Tribunal found that the applicant was entitled to part of the input tax credits disallowed by the Commissioner as the result of an audit.

The Commissioner initially found that the applicant was not carrying on an enterprise (and therefore was not entitled to any credits), but after the proceedings commenced concede that issue and the claim before the Tribunal was solely on whether the applicant was entitled to claim credits for particular acquisitions. The central issue appears to have been whether the acquisitions were non-creditable as they were for private or domestic use.

The Tribunal allowed expenses such as legal and accounting fees, domestic air fares, certain taxi fares, car rental and accommodation charges. The applicants accepted that he had mistakenly claimed credits for the rent of his home and life insurance (input taxed) and international travel and water charges (GST-free). The Tribunal disallowed claims for home contents insurance, utilities, airfares of other passengers and various entertainment expenses, including tickets for events. The Tribunal allowed a portion of some expenses after the Commissioner conceded that a 1/3rd apportionment was appropriate.


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