ATO warns business owner over loyalty points from cards

[burmans]

One factor that has not been mentioned, if this ever were to escalate, is the distinction between points earned personally vs those earned via a business.
How would they determine that?

By looking at the nature of the expenditure? With the ATO it's not like a court, the burden of truth is normally on the taxpayer rather than the ATO.

 

[Kangol]

By looking at the nature of the expenditure? With the ATO it's not like a court, the burden of truth is normally on the taxpayer rather than the ATO.

So if the nature of the expenditure is personal, then is it not deemed business income? I thought the article was alluding to otherwise - suggesting that points earned from business expenditure are ought to be deemed separate business income, regardless of the nature of the redemption.

If not, say in a year you earn 200k from personal and 200k from business.
You then redeem a flight for 100k. How do they determine which pool the 100k comes from? What if you take a personal trip but do some work on the plane?