The Self Education Expenses and the Income Tax Assessment

Cheung was enrolled regular in 2004 as a student in the Diploma of Hospitality focussing at the Blue Mountains Hotel School during which date she was required to throw effectively two semesters in industry placements in hotels or similar businesses.

During these placement activities, Cheung elected to complete two supernumerary semesters of full-time, on-site study during which she could non work at the hotels. She would rubric that money earned while in inform full-time should not be taxed because she was simultaneously paying for her education. The Commissioner ruled establish on the Australian tax code that the deduction was not legitimate as was found in earlier cases such as Lunney v. Commissioner of tax revenue (497), as well as Commissioner of revenue v. Cooper (197), and Commissioner of Taxation v. Hatchett (82).

A number of cases such as Commissioner of Taxation v. Studdert (83) established the principle that educational expenditures should be relevant to one's employment activities as well as incidental to those activities. What must be established is a continuing employment human relationship at the time when the expenditure is incurred which was affirmed in Commissioner of Taxation v. Maddalena (426) and later, in Federal Commissioner of Taxation v. Kropp (375).

Richards (4) states that the Tribunal denied the deductions sought by Cheung.

While it was a condition of attendance at the school that this student g

In this case, the AAT executive held that Cheung

Lunney v Commissioner of Taxation (1958) 100 CLR 478

Commissioner of Taxation v Maddalena (1971) 45 ALJR 426

According to the Australian Taxation Office (1), self-education expenses atomic number 18 those expenses incurred when an individual undertakes a work-related configuration to obtain a ball qualification from a school, college, university, or other educational institution. The course must be sufficiently connected to the taxpayer's current employment. wholly expenses for self-education that are related to work at the time that the taxpayer was studying are allowed.

Commissioner of Taxation v Studdert (1991) 33 FCR 75

Commissioner of Taxation v Klan (1985) 80 FLR 320

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