Where you provide a Christmas party and you hire or lease an entertainment facility as part of the party, the taxable value is the cost of the activity (unless you elect to use the 50-50 split method).
Entertainment facility leasing expenses are expenses you incur in hiring or leasing:
- a corporate box
- boats or planes for providing entertainment, or
- other premises or facilities for providing entertainment.
Expenses or parts of expenses attributable to providing food or beverages are not entertainment facility leasing expenses.
50-50 split method
You may elect that the total taxable value of tax-exempt body entertainment fringe benefits arising from the use of entertainment facilities you hire or lease is 50% of all entertainment facility leasing expenses.