# Income tax deduction for damage to another person’s car during a business trip?



## Jack Malarkey (Jan 11, 2016)

The Australian Taxation Office has confirmed you can deduct the cost of an amount you need to pay for damage you cause to another person's car during a business trip.

Let's say you've just picked up some UberEATS food and you're on your way to deliver it to the consumer. You reverse into another car as you leave the restaurant car park and end up paying $1,000 to the other driver (or to an insurance company) for the damage you caused.

The Tax Office advice confirms that you can claim this amount as a general business expense. Here's the relevant advice:

*Damage caused to third party motor vehicle in the course of your employment*

Where you use your own motor vehicle in the course of your employment, you may be entitled to a deduction for the costs you incurred if you are:


involved in an accident which causes damage to a third-party vehicle, and
liable for the damages/compensation for the damage caused to the other vehicle, you may be entitled to a deduction for the costs you incurred.
Where an accident occurs in the course of producing your assessable income, the expenses associated with the liability to pay for the damage to the other vehicle involved in the accident are incidental and relevant to the production of your assessable income. They are not capital, private or domestic.

(https://www.ato.gov.au/Individuals/...aim/Vehicle-and-travel-expenses/Car-expenses/)


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## Hugh G (Sep 22, 2016)

My mate's got an incarcerated acquaintance down in Sydney who has several specialist guys who can set up motor accidents. They are a full service organisation with lots of panel-beaters, physiotherapists and credible witnesses available. You can choose a luxury European vehicle to collide with and inrease your tax deduction.

Highly recommended - only charge Commission when deal is done !


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## Jack Malarkey (Jan 11, 2016)

Hugh G said:


> My mate's got an incarcerated acquaintance down in Sydney who has several specialist guys who can set up motor accidents. They are a full service organisation with lots of panel-beaters, physiotherapists and credible witnesses available. You can choose a luxury European vehicle to collide with and inrease your tax deduction.
> 
> Highly recommended - only charge Commission when deal is done !


We had a similar case in Canberra: https://www.google.com.au/amp/s/amp...m-insurance-for-bad-knee-20160809-gqoh16.html.


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## george manousaridis (Jan 27, 2017)

Hugh G said:


> My mate's got an incarcerated acquaintance down in Sydney who has several specialist guys who can set up motor accidents. They are a full service organisation with lots of panel-beaters, physiotherapists and credible witnesses available. You can choose a luxury European vehicle to collide with and inrease your tax deduction.
> 
> Highly recommended - only charge Commission when deal is done !


Highly i like it, give your associates a pat on the back.

Lol,nothing new just like the whip lash syndrome.


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## Sydney Uber (Apr 15, 2014)

Jack Malarkey said:


> The Australian Taxation Office has confirmed you can deduct the cost of an amount you need to pay for damage you cause to another person's car during a business trip.
> 
> Let's say you've just picked up some UberEATS food and you're on your way to deliver it to the consumer. You reverse into another car as you leave the restaurant car park and end up paying $1,000 to the other driver (or to an insurance company) for the damage you caused.
> 
> ...


I ran over a client's laptop once. This CEO was in a total state of shock (knowing HE had put it down behind my car whilst deeply engrossed in a phone call). 2 days before an AGM,

He ran an oil exploration company, and his idea of keeping his company's data safe was to carry it around with him!

His wife who usually handled such emergencies was out of the country. A quick call to a PC nerd I knew directed me to a data recovery specialist. Even though the Laptop was totally cracked the hard drive was salvageable and the data quickly swapped across to a new laptop.

A month later, the client calls me up and asks why I sent him the $2500 cheque. It was the payout from NRMA who covered such damage. 15 years on He is still is a great client.


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