When preparing a client’s tax return they informed you that they had taken an overseas trip for business purposes and on the basis of it being a legitimate expense the costs were included as a deduction. When the client came to review and sign the tax return photographs of the trip were shown to you that showed the client and the family sightseeing in Europe. What would you do at this point? Discuss in 120–150 words. Australian Tax Obligations should be addressed.
Generally any expenditure incurred in connection with the business shall be allowed as expenditure for the financial year.Remember that expenduture exclusively met for business purpose and some other expenditure incurred by the assessee other than business purpose may allowed as per US tax provisions but subject to conditions as may be imposed. in the given case the assessee went for overseas trip for business purpose and the client had told that this expenditure is for business purpose but later the client showed that the photographs of the familu sightseeing in Europe. so the income tax return cannot further processed because tha client gave incorrect details to save his money. so the tax return cannot furthrer processed. |
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