A taxpayer's claim for a deduction constituted by his share of a partnership loss is not a claim for 'expenditure incurred by him' within s 226(2) of the Income Tax Assessment Act 1936, and accordingly does not attract additional tax under that provision even where the underlying deduction is disallowed. The expression 'his return' in s 226(2) refers to the taxpayer's own return and does not encompass the partnership return. Where a taxpayer's return and the partnership return together provide a full and accurate disclosure of the relevant facts, s 226(2) does not apply merely because the taxpayer has incorrectly characterised the disclosed amount.
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