Meal expenses claimed by employees outside regular working hours are being scrutinised by the ATO, with an objective to re-assess claims. A recent case at the AAT has delved into the depth at which the ATO will re-assess, providing increased guidance for individual claiming at D5.

At the AAT, the deduction turned on the claim being above the daily reasonable amount compared to the number of days the allowance was received. Therefore, the ATO was allowed to enforce substantiation requirements for the entirety of the claim.

The case gives practitioners an understanding of how exactly the ATO is currently dealing with overtime meal allowance expense claims.

Source: Mitchell and Commissioner of Taxation [2018] AATA 2507