Edited version of your written advice

Authorisation Number: 1012904000035

Date of advice: 6 November 2015

Ruling

Subject: Deduction -meals and gifts

Question 1

Can you claim a deduction for meals expense while attending meetings and interviews?

Answer:

No.

Question 2:

Can you claim a deduction for the purchase of a gift and a card?

Answer:

No.

Question 3:

Can you claim a deduction for the purchase of food supplied at a meeting?

Answer:

No.

This ruling applies for the following period:

Year ended 30 June 2015

The scheme commenced on:

1 July 2014

Relevant facts

You are employed in the health sector.

You travelled to attend a number of work meetings and interviews for prospective employers either during working hours or after working hours.

You paid for the following expenses while you attended these meetings:

• food

• meals such as lunch and dinner

• a gift and a card.

You do not hold all your receipts for the food you purchased.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1.

Reasons for decision

Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income, except where the outgoings are of a capital, private or domestic nature, relate to the earning of exempt income or are excluded by another provision of the taxation legislation.

In order for a deduction to be allowable under section 8-1 of the ITAA 1997, it must be incurred in the course of gaining or producing assessable income. A deduction is not allowable if it is a prerequisite to the derivation of assessable income.

Expenditure on the daily necessities of life (such as food and drink) is generally a private expense and is not incurred in gaining or producing assessable income. The deductibility of expenditure on meals will depend on the essential character of the expenditure on the basis of the facts of each case.

Meal expenses
Generally, for meal expenses incurred in the ordinary course of a working day a deduction is not allowable under section 8-1 of the ITAA 1997 on the basis that there is not a sufficient connection between the expenditure and the income earning activities of a taxpayer (paragraph 138, Taxation Ruling TR 95/15).

In addition expenditure on meals while attending an educational institution, work-related conference or seminar where the taxpayer is not required to sleep away from home in not deductible under section 8-1 of the ITAA 1997 (paragraph 24, Taxation Ruling TR 98/9).

However a deduction for the cost of meals may be allowable where an employee who in the course of earning their assessable income is required to sleep away from home, is considered to be travelling on work; for example, attending a work related conference and incur meal expenses as part of a work-related travel expense.

In your case, there is no information provide to indicate you were required to travel overnight as part of your employment while attending the meetings and functions. As noted above the cost of meals during a one day trip to attend a work-related conference or seminar or meetings is not deductible under section 8-1 of the ITAA 1997 as there is not a sufficient connection between the expenditure and your income earning activities. This is the case even if you travel to a number of different places during the day and return to your place of employment the same day or if you are required to attend the meetings and functions for work outside normal working hours.

Further, the expenses incurred to purchase food, gifts or cards for an employee or meals to attend a meeting with a prospective employer are private in nature and are not deductible under section 8-1 of the ITAA 1997.