Our client is based in NSW and had offices in both NSW and VIC. Due to covid-19 restrictions on interstate travel and the significant change in trading environment, our client had to break the lease before termination date, which consequentially incurred a fine.
Our client would have kept the lease if it wasn't for the government's restrictions. Is this case, is the fine tax deductible for the business?
Thanks in advance.
Hello @northeast
Whilst this could technically be considered a business premise operating expense, I don't believe you would be able to claim a tax deduction for this type of expense.
Having said that, I have done some research for you and have been unable to find a definitive answer for this scenario.
You may want to email our early engagement team for advice.
All the best.
TonyATO
Hello @northeast
Whilst this could technically be considered a business premise operating expense, I don't believe you would be able to claim a tax deduction for this type of expense.
Having said that, I have done some research for you and have been unable to find a definitive answer for this scenario.
You may want to email our early engagement team for advice.
All the best.
TonyATO
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