| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1012634989281
Ruling
Subject: FBT - personal event of directors in conjunction with a marketing event
Whether the payment of the personal event expenses of the directors of a company which are reimbursed by the company will be subject to Fringe Benefits Tax under the Fringe Benefits Assessment Act (FBTAA) where the personal event is used by the company for commercial purposes.
Question 1
Will the provision of the apparel to be worn by Director 1 on the personal event will give rise to a residual benefit under section 45 of the FBTAA?
Answer
Yes
Question 2
Will the reimbursement of the cost of professional beauty services to X on the event day give rise to an external expense payment benefit under paragraph 20(a) of the FBTAA?
Answer
Yes
Question 3
Will the reimbursement of the cost of professional services to Y on the event day give rise to an external expense payment benefit under paragraph 20(a) of the FBTAA?
Answer
No
Question 4
Will the reimbursement by the Company of the costs of certain other services give rise to an external expense payment benefit under paragraph 20(a) of the FBTAA?
Answer
Yes
Question 5
Will the reimbursement by the Company of the event venue hire cost give rise to an entertainment facility leasing expense benefit under subsection 136(1) of the FBTAA?
Answer
Yes
Question 6
Will the food and drink expenses paid by the Company for the personal event be the provision of a property benefit pursuant to section 41 of the FBTAA?
Answer
Yes