Question

A client informed you that they took an overseas trip for business purposes, On the basis of it being a legitimate expense they ask for the costs to be included as a deduction.

When the client came to review and sign the tax return they showed you photographs of the family sightseeing in Europe. What would you do at this point?

You are the tax agent. Your client went on the overseas trip. What enquiries do you perform to ascertain deductible and non-deductible expense? What is your advice to the client?

120–150 words.

Answer 1

Generally any expenditure incurred in connection with the business shall be allowed as expenditure for the financial year.Remember that expenduture exclusively met for business purpose and some other expenditure incurred by the assessee other than business purpose may allowed as per US tax provisions but subject to conditions as may be imposed. in the given case the assessee went for overseas trip for business purpose and the client had told that this expenditure is for business purpose but later the client showed that the photographs of the familu sightseeing in Europe. so the income tax return cannot further processed because tha client gave incorrect details to save his money. so the tax return cannot furthrer processed.