• RFBA implications of providing tax-exempt body recreation entertainment

    The cost of hiring or leasing entertainment facilities such as a corporate box is also an excluded benefit, that is, it does not result in a RFBA for employees.

    The balance of the recreation component of tax-exempt body entertainment (for example, tickets to a golf day) may result in a RFBA for an employee provided the total taxable value of all benefits received by the employee exceeds $2,000. Better practice entities enter the employee name and employee AGS/ID number in the description field of the expense code so that the amount can be allocated to an employee, rather than attempt to allocate expenses to individual employees at the time of preparing the FBT return.

      Last modified: 17 Jul 2012QC 21998