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February 6, 2019 at 4:15 am #999287Up::0
We use spotify in our shop regularly and can obviously claim the $11.99 monthly subscription fee for this. But I’d like to set up a family plan so that my children can also share in this. The family plan is $17.99. Obviously I can’t claim $17.99 for this as I only really needed to pay $11.99 to get the spotify service for the business.
How would the ATO see the situation if I use the family plan receipts of $17.99 but only claim $11.99 of this for the business? Has anybody else had experience with similar family plans (i.e., Apple, Spotify, Google Play).
February 6, 2019 at 6:01 am #1218769Up::0In the eyes of the ATO I believe you can split the cost of services between business and personal. So you could still claim the business portion.
You’ll just need to make a call about whether the business usage accounts for 2/3 of the plan (or 1/2 or 1/3).
We do have some accountants on the forums, so hopefully they’ll step in with any further detail or corrections.
Dave
February 8, 2019 at 12:00 am #1218770Up::0Yes, you can split the cost between private and business usage.
As long as the split is reasonable, you should be fine
February 9, 2019 at 12:23 am #1218771Up::0brownbag, post: 263908, member: 112769 wrote:We use spotify in our shop regularly and can obviously claim the $11.99 monthly subscription fee for this. But I’d like to set up a family plan so that my children can also share in this. The family plan is $17.99. Obviously I can’t claim $17.99 for this as I only really needed to pay $11.99 to get the spotify service for the business.How would the ATO see the situation if I use the family plan receipts of $17.99 but only claim $11.99 of this for the business? Has anybody else had experience with similar family plans (i.e., Apple, Spotify, Google Play).
I’m going to throw out a red herring here (extreme as it sounds).
1. I am not an expert in breach of artistic rights but breach of copyright may in some cases be a criminal offence in Australia (not sure of indictable in exreme cases or not)
2. Most of these music services offer consumer licensing only which means any commercial use is outside the license. Is that a copyright infringement? EG https://support.spotify.com/no/using_spotify/the_basics/use-spotify-in-my-bar-restaurant-store-school-etc/
3. Finally to the tax deduction ..you cannot claim tax deductions for illegal activity. ITAA 1997 Sect 26.54
http://classic.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s26.54.htmlHelping build better businesses and better lives with expert financial and taxation advice. info@360partners.com.au www.360partners.com.au 03 9005 4900February 9, 2019 at 2:24 am #1218772Up::0JamesMillar, post: 263960, member: 5318 wrote:I’m going to throw out a red herring here (extreme as it sounds).1. I am not an expert in breach of artistic rights but breach of copyright may in some cases be a criminal offence in Australia (not sure of indictable in exreme cases or not)
2. Most of these music services offer consumer licensing only which means any commercial use is outside the license. Is that a copyright infringement? EG https://support.spotify.com/no/using_spotify/the_basics/use-spotify-in-my-bar-restaurant-store-school-etc/
3. Finally to the tax deduction ..you cannot claim tax deductions for illegal activity. ITAA 1997 Sect 26.54
http://classic.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s26.54.htmlGreat alternatively viewpoint.. shops and commercial usage require specific licensing, from what i know you can not even technically play a radio in your retail shop due to licensing requirements…
1. here is some basic licensing costs: http://apraamcos.com.au/music-customers/licence-types/retail/
2. licence types: http://apraamcos.com.au/music-customers/licence-types/
3. pdf overview: http://apraamcos.com.au/media/Customers/PEG_Retail.pdf
Although OP did not say they didnt have a license, if they dont, it may pay to investigate this first.. If license is in order, claiming should not be an issue.
J
Jason Ramage | Lucas Arthur Pty Ltd | E: hello@lucasarthur.net.au P: 61 3 8324 0344 M: 61 412 244 888February 9, 2019 at 2:27 am #1218773Up::0But OP did say he wanted to use Spotify in their store and unfortunately they do not appear to offer any commercial use under any circumstances https://support.spotify.com/no/using_spotify/the_basics/use-spotify-in-my-bar-restaurant-store-school-etc/
Helping build better businesses and better lives with expert financial and taxation advice. info@360partners.com.au www.360partners.com.au 03 9005 4900 -
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