Golf day for employees, clients and associates: cost is $320 per person
Paul, an employee, takes several clients and his partner to a corporate golf day paid for by his employer. The event is not held on a working day and Paul has been provided with taxi vouchers to escort his clients to and from the event.
Is entertainment being provided?
Yes, attending a golf day is a social event therefore the purpose of the day is entertainment related.
Employees
Does an exemption apply?
The food, drink and taxi travel is not exempt from FBT in this circumstance. The minor benefit exemption will not apply because the cost per person is $320. A taxi travel exemption will not apply as the trip did not begin or end at the workplace.
Income tax and GST credits
The employer is entitled to an income tax deduction and GST credit for the cost of providing the benefit and the FBT paid.
Associates
Does an exemption apply?
The food, drink and taxi travel is not exempt from FBT in this circumstance. The minor benefit exemption will not apply because the value of the benefit is $320.
Income tax and GST credits
The employer is entitled to an income tax deduction and GST credit for the cost of providing the benefit and the FBT paid.
Clients
Does an exemption apply?
There is no FBT payable on the food drink, and taxi travel provided to clients.
Income tax and GST credits
The employer cannot claim an income tax deduction or GST credits for food or drink provided to the client.
Sections within Common entertainment scenarios
Last Modified: Friday, 19 October 2007