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  • L – Income tax exempt body – entertainment

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    This category of fringe benefit relates to non-deductible entertainment expenses.

    You provide this type of fringe benefit if either of the following applies:

    • you are wholly or partially exempt from income tax
    • you did not derive assessable income from the activities the entertainment relates to.

    If you are an income tax exempt employer, you may choose to value meal entertainment using the valuation rules applicable to meal entertainment fringe benefits. If so, you must include the benefits on the return at item P 'Meal entertainment'.

    If you are not exempt from income tax and you provided entertainment, this may give rise to a fringe benefit. Do not value a benefit of this type in this category – instead, establish the taxable value as an expense payment, property or residual fringe benefit, depending on how you provided the benefit. Alternatively, you can value meal entertainment as a meal entertainment fringe benefit.

    Example: Complete tax exempt body – entertainment fringe benefits

    A local council provides a Christmas function for its employees during the FBT year. The value of the tax-exempt body entertainment fringe benefits is $5,000.

    The council shows this at item 23 as follows:

    Example of council entry at item 23

    End of example
    Last modified: 23 Oct 2013QC 27133