Description
An Australian resident taxpayer (the 'taxpayer') undertakes domestic or overseas travel and as part of the travel participates in an educational course, seminar or conference ('educational activities') arranged by an organiser (the 'organiser'). 2. The educational activities may include, but are not limited to, the taxpayer: a.) Purchasing a self-study training program (for example CD, DVD and/or written publications) which may be undertaken at a holiday destination of the taxpayer's choice; b.) Undertaking a self-study training program and/or attending a seminar on board a cruise ship; or c.) Undertaking an educational activity such as a wealth creation seminar whilst travelling. 3. The promotional materials of the organiser may include one or more of the following features to encourage the claiming of deductions: a.) the self-study training program can be undertaken at a location and time of the taxpayer's choice; b.) the program can be undertaken individually or in a group; c.) there is a minimum requirement of self-study per day over the course of the program; d.) a period of time is available to spend at the taxpayer's own leisure; e.) in some instances, no agenda is published for a seminar and the content of presentations is tailored to the audience's familiarity of the topics; f.) taxpayers may also be required to conduct an exam at the end of the course and/or complete a feedback form to acknowledge completion; or g.) taxpayers are required to record time spent in a diary, so that 100% of the educational fees and associated travel/accommodation can be claimed as a deduction. 4. In some instances, the educational activity may be targeted towards members of a particular profession, occupation or field of employment. 5. The organiser may allege that they have received endorsement from the ATO supporting the ability to claim deductions for the costs incurred in participating in an educational activity under these types of arrangements. 6. The taxpayer does not objectively apportion their expenses to the extent they are not connected to their income-earning activities and are private or domestic in nature. This may result in the taxpayer claiming as a deduction the full amount of their education/conference expenses and associated travel costs.