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  • Working lunch provided on business premises

    Jim Tassel, a state government officer and Drew Lait from a local government office have collaborated on a project to improve the delivery of whole-of-government services. A meeting is called to discuss financial issues and is held at Jim's office. Due to a tight schedule Jim orders pizza and soft drinks to be delivered to his office for a working lunch. Jim used the government organisation's credit card to pay for the pizza and soft drinks.

    Is entertainment being provided?

    No. The provision of a light meal without alcohol ordered in for lunch while working is not considered entertainment.

    Employees

    Does an exemption apply?
    Yes. The property exemption for food and drink provided and consumed on business premises will apply to the food and drink.

    Input tax credits
    The government organisation can claim input tax credits for food and drink provided.

    Associates

    Does an exemption apply?
    Maybe. Food and drink provided to Drew will not qualify for the property exemption. The food and drink provided may be exempt if the minor benefits exemption applies.

    Input tax credits
    The government organisation can claim GST input tax credits for food or drink provided.

      Last modified: 20 Dec 2017QC 19918