Attending AGMs

[Crash]

Do people travel to AGM's, and use as a tax write off against profits? For example can I travel to the AGM of a company in Perth that I hold shares in, then claim my travel and accommodation expenses? Does anyone ever do this?

 

[Caliente]

Re: Attending AGM's

haha - thats a pretty cool idea. I imagine if you are registered as a trader by the ATO you could do this...

Being from Perth, and owning a commodity rich portfolio means I'm fortunate enough to be able to attend almost all the AGM's here.

The irony is that the one AGM I cant attend is for AGM (Allegiance mining)!/.

 

[The Y-man]

Re: Attending AGM's

Yes, but I understand you can only claim "reasonable travel and accomodation expenses". i.e. for interstate, the flight there and back, one night's accomodation, and 3 meals. If you stay any longer, you will need to apportion the costs (i.e. you can only claim 1/2 the airfare, 1 nights accomo and 3 meals if you stay 2 days)

Cheers,

The Y-man

 

[Ko Ko]

Re: Attending AGM's

I believe these expenses arn't deductible expenses under the ITAA 1937 s8.1 I believe it is hard to prove whether attending the AGMs for gaining or producing assessable income. Also I guess attending these AGM would be for private purposes. The only way these expenses could be deductible is if you hold a large parcel of shares I guess greater than 3% and working for a broker, or fund manager ie. AMP etc.
Hoped this helped

 

[Crash]

Re: Attending AGM's

So which is it KoKo or Y-Man?

My basic understanding was what YMan suggested, but KoKo quoting the act sounds more solid?

 

[Ko Ko]

Re: Attending AGM's

From knowledge in general, if you are a personal investor, expenses incurred for travel, hotel etc for attending AGMs is not a taxable deductible expense since it is a private, deomestic expense, however if you are working for say an insurance organisation, investment bank, asset manager I believe the expenses are deductible. The rationale is that these type of organisations generate income through investments in the capital market and investment decisions are somewhat dependent on attending AGMs, moreover these expenses incurred are incurred for producing assessable income for the organisation.

 

[doctorj]

Re: Attending AGM's

Has anyone here attended an AGM where they felt one or more of the director's were evasive to their questions to the point of being hostile? If so, how did you deal with it (aside from doing the obvious and selling)?

 

[happytrader]

Re: Attending AGM's

Hi Crash

Go to the ATO Legal Data Base

Lookup Tax Ruling 98/9: Income tax deductability of self education expenses.

This should answer your question.

Cheers
Happytrader