TR 2004/6 Reasonable Allowances

[Paul@PFI]

A shout out to all those tax practitioners for your input.

TR 2004/6 deals with "reasonable allowances" and the substantiation exceptions available to some taxpayers who then use the reasonable allowance amount issued in an annual Tax Determination to avoid the need for 100% substantiation using receipts etc.

In that ruling there is a condition....The accommodation must be provided "in a commercial establishment such as a hotel, motel or serviced apartment".

Question : It doesn't say cabin in a commercially operated caravan park and no guidance is given. Review of BPR's doesn't give any insight either. Certainly the Cmmr doesn't agree on friends cottages, sleeping rough, tents, caravans etc. What do you think ?? I'm contemplating a determination on the terminology used.

 

[speary]

To be honest I think its pretty clear based on the facts that you have presented.

The ruling states a 'commercial establishment'. The fact that is says 'such as', in my opinion does not intend to be an exhaustive list of examples.

Your example of a commercially operated caravan park (as defined by you) clearly satisfies the commercial establishment requirement of the ruling.

Sure you could go down the route of getting a PBR for the client but IMO it would be unnecessary.