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Edited version of private advice
Authorisation Number: 1012624390347
Ruling
Subject: Entertainment
Question 1
Is the entertainment considered part of an ordinary course of business that you carry on?
Yes, for scenarios 1,2,3,4,5 and 8.
No, for scenarios 6,7, 9 and 10.
Question 2
Is the event eligible for the exception pursuant to section 32-40 of the ITAA 1997?
Yes for scenarios 2 and 5.
No, for scenarios 1,3,4,6,7,8,9, and 10.
Question 3
Is the event eligible for the exception pursuant to section 32-45 of the ITAA 1997?
Yes for scenarios 4,5 and 8.
No for scenarios 1,2,3,6,7,9 and 10.
Question 4
Are the employees who attend the event in receipt of a benefit that is provided in respect of their employment pursuant to the definition of fringe benefit in subsection 136(1) of the FBTAA?
Yes for scenarios 1,2, 3b, 4b,6 and 7.
No for scenarios 3a, 4a, 5, 8, 9 and 10.
Question 5
If so, does the benefit constitute tax-exempt body entertainment pursuant to section 38 of the FBTAA?
Yes for scenarios 1, 3b, 4b, 6 and 7.
No for scenarios 2.
Not applicable for scenarios 3a, 4a, 5, 8, 9 and 10.
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