Reid worked as a "channel manager" for two different companies at different times: Amcom Pty Ltd from October 17, 2011, to July 2015, and Nextgen Group Holdings Pty Ltd from December 7, 2015, to June 30, 2016. In 2017, after getting a default tax assessment for 2013, Reid filed tax returns for 2012, 2014, 2015, and 2016. Soon after, the Australian Taxation Office (ATO) started an audit, mainly focusing on Reid's work-related expenses (WREs), including claims for car expenses and home office expenses.
The ATO reduced Reid's claims because he couldn't prove them adequately and imposed a penalty for not taking reasonable care.
Car Expense:
Reid said he used his Mercedes Benz mostly for work, claiming 91.21% business usage using a logbook. He claimed he always had another vehicle mainly for personal use. Amcom confirmed Reid needed his car for work and gave him a $15,000 yearly car allowance. Reid claimed $86,793 in car expenses over the four years using the logbook method.
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