Taxpayers' attempts
Some things that taxpayers have attempted
- A woman tried to write off toilet paper as a medical expense (Canada);
- A Vancouver man invented a wife on his personal tax returns for several years (Canada);
- Tax auditors went to various nightclubs and bars to make sure the exotic dancers were correctly reporting their earnings. The auditors traveled in pairs. It is understood that although the audit was very popular with staff, it was eventually halted because of a lack of results (Canada, United States);
- During an audit of a manufacturing facility the owner-manager was asked to explain a $300 per month expense. He said that he paid his children to clean the offices. The auditor found this reasonable until he asked the ages of the children. The reply was 3 and 6. The expense was disallowed as being unreasonable in the circumstances (Canada);
- RCMP officers in Canada attempted to write-off haircuts as an employment expense (Canada).
- One person attempted to write off a cruise to several European cities. The taxpayer claimed she needed the downtime in order to focus her attention on her acting career. (Canada)
- A plumber was audited for a three-year period. All his meals claimed on his tax returns were disallowed. He had not put the name of the person and the nature of the business transacted, on any of the meal receipts. The total tax owed was about $15,000. On a Friday night in the bar he moans to a friend of his who is an electrician. Several months go by and the electrician is audited. With the help of Canada 411, Vancouver Yellow Pages and a few other sources, there was a name and some kind of business purpose written on every single receipt and credit card statement. This was only partially successful; the tax auditor simply phoned a selection of the people. Some had never heard of the electrician or had died. (Canada)
- The owner or a trucking corporation was asked about a $1,500 expense paid out to cash every month and deducted against 'Janitorial Services'. In responding to a question from the auditor, the owner replied he paid his children $1,500 a month to clean the parking area. The auditor asked the ages of the children. The answer was 2 years and 6 years. The result was the same as in the earlier Canadian case. (United States).
- Having had a particularly good year, the owner of a construction business went to a large local store and picked up all the receipts he could find from the floor. The auditor could not understand why a construction business that specialized in concrete forming had purchased a large quantity of garden gnomes, bathroom fixtures and other gardening supplies. (Canada)
