Alex Kingsford is a mechanical engineer working for ABC Engineering in Melbourne. Alex owns a property in Dandenong, Victorian where he and his family are residing. He also runs a homebased food catering business, preparing food for local residents and school canteens. Catering business is well-structured. Alex works 15 days a month and earns a substantial income from the catering services business. He is travelling from ABC Engineering workshop to his homebased business by car or sometimes Uber. When he lodged his tax return in July 2019, he has HI6028 Taxation Theory, Practice and Law Individual Assignment T1.2020 4 requested a deduction for a substantial amount of travelling expenses between the ABC Engineering workshop and home-based food business. Alex is now seeking your advice. With reference to relevant legislation and case law discuss whether Alex’s travelling expenses between the ABC Engineering workshop and his homebased catering business is an allowable deduction.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Alex Kingsford is a mechanical engineer working for ABC Engineering in Melbourne. Alex owns a
property in Dandenong, Victorian where he and his family are residing. He also runs a homebased
food catering business, preparing food for local residents and school canteens. Catering
business is well-structured. Alex works 15 days a month and earns a substantial income from the
catering services business. He is travelling from ABC Engineering workshop to his homebased
business by car or sometimes Uber. When he lodged his tax return in July 2019, he has
HI6028 Taxation Theory, Practice and Law Individual Assignment T1.2020 4
requested a deduction for a substantial amount of travelling expenses between the ABC
Engineering workshop and home-based food business.
Alex is now seeking your advice. With reference to relevant legislation and case law discuss
whether Alex’s travelling expenses between the ABC Engineering workshop and his homebased
catering business is an allowable deduction.

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