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I have received a fine for not cutting the grass on my vacant block of land which I paid. My question is: with the money that I paid the fine, can I claim it back in tax because we use that block of land as an investment.

8 months ago

Responses

Hi AnneMarie,
I might be wrong but I don't believe any fine is tax deductible. Check with an accountant.

Sorry :-(

Graham

Hi Anne-Marie,

Generally speaking, no. Fines are not a deduction, same as any other government penalty for non-compliance.

Check with your accountant, but my standard answer is no.

GDay AnneMarie,

my first question is what council has that much time on their hands that they identify all the long grass and fine people to whom it belongs???!???!??!?!?!!!!!!

As much as I hate to get all Tax law nerdy on everyone, s26.5 of the ITAA 1936 says you cannot deduct a fine under AUSTRALIAN LAW: meaning federal, state or territory law.

So the question "can I claim this in my tax return?" has an answer in two parts:

PART 1: you can claim "holding costs"on vacant land where the intention is to derive assessable income from that land.........so maybe YES you CAN deduct it.

PART 2: you cannot claim fines if they are as a result of a federal, state or territory law......so maybe NO.....

Its all in the details, so do some research, talk to your bean counter, and mow the grass before some clown gives you another fine!!!!

cheers
BC

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