The latest CPA tax news;

 

Costs of qualifying as a dentist not deductible

 

The AAT agreed with the ATO that expenses incurred by a dental technician in qualifying as a dentist were not deductible self-education expenses:

• neither the assessment nor the exams were required to maintain or improve the taxpayer’s skills as a dental technician
• there was insufficient correlation between the assessment and examinations and the improvement of the taxpayer’s role as a dental technician
• the “essential character” of the costs was to obtain registration as a dentist and thus were incurred at a point too soon to be regarded as incurred in gaining or producing the taxpayer’s assessable income as a dentist.

There was no clear evidence that the assessment and exams led to the taxpayer’s pay increases as a dental technician.

 

For more information, find this appeal of Ionita and Commissioner of Taxation or contact our office at 9721 1055.

 

 

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