Tax Law Improvement Act 1997 (121 of 1997)

Schedule 10   Entertainment expenses

Part 4   Consequential amendments of other Acts

Fringe Benefits Tax Assessment Act 1986

21   Subsection 136(1) (definition of non-deductible entertainment expenditure)

Repeal the definition, substitute:

non-deductible entertainment expenditure means a loss or outgoing to the extent to which:

(a) one or other of these provisions applies to it, or would apply if it were incurred in producing assessable income:

(i) subsection 51AE(4) of the Income Tax Assessment Act 1936;

(ii) section 32-5 of the Income Tax Assessment Act 1997; and

(b) apart from those provisions, it would be deductible under section 51 of the Income Tax Assessment Act 1936 or
section 8-1 of the Income Tax Assessment Act 1997, or would be if it were incurred in producing assessable income;

(on the assumption that subsection 51AE(5AA) of the Income Tax Assessment Act 1936 and section 32-20 of the Income Tax Assessment Act 1997 had not been enacted).