In Lenten and Commissioner of Taxation [2008] AATA 281 (9 April 2008), the AAT have found that the dominant purpose of a school
teacher’s overseas travel was to improve his knowledge and skills as a teacher. This led to an increased chance of obtaining a promotion,
which he later succeeded in doing.

Facts
The facts of the case were that a school teacher used his long service leave to travel the World, taking in Asia, the UK and Europe. His
itinerary included packaged tours and various expeditions.

Interestingly, the taxpayer did not attend any lectures, professional conferences; meet with any academics, unless of course they were at
the Museum lectures he attended.

Held
The trip was arranged personally and was not required by or requested by his employer. The claims were made in his 2004 and 2005 Income Tax Returns, with the ATO requesting its refund back in 2006.

The taxpayer’s contention was ‘‘I can’t see how teachers can teach humanities or literature if they haven’t seen what they are teaching about’’. To that end, the taxpayer did prepare some assignments upon his return to his employment, which were utilised by his employer.

Having claimed the entire trip as a tax deduction, the AAT ruled that he could claim 75% of the value of his trip, and minor other items such as a proportion of publications and newspapers acquired en route.

It was accepted by the AAT that the ‘‘applicants activities overseas, for which deductions have been claimed, were all directly related to the dominant purpose of the overseas travel. I also accept that a minor element of the applicants travel would have a recreational character rather than workrelated.’’

This decision clearly shows that where an employee can demonstrate a linkage between their employment and the incurrence of an
expense, in this case travel, it could be claimed as a deduction. The thought that went into the structuring of the holiday, including the
places of significance visited, and good record keeping, as a winner for the taxpayer.

If you would like further details surrounding this case, or other Education matters, please contact Stephen O'Flynn on 03 9614 4444.