Mongrel of a deduction

18 March 2011

Professor Michael Dirkis discusses the Australian Taxation Office and its long-standing problem with deductions on guard dog training, in the Australian Financial Review.

According to the ATO, if working dogs are treated as capital of the business, accordingly any training to help a guard dog or protect an owner's assets is a once-off expense benefiting the business - and not deductible as an expense.

"There's this belief that someone buys a rottweiler or a German shepherd and it's basically the family pet," Professor Dirkis says.

"But I would've thought that dog training is something that's actually ongoing and therefore deductible.

"At least in this case the training was for the guard dog - traditional claims involved the family dog."

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