Call Us +1-555-555-555

Think you can claim your lunch time ‘client meetings’? Think again….

26 February 2019

It is a widely held belief that you can claim your client or team ‘meetings’.  That is, lunch with your client or team member while discussing business. Although these meetings may be a necessary cost of doing business, in the eyes of the ATO there are certain circumstances in which only a portion of this meeting will be deductible, if at all.

 

The ATO classes most events with food and drink as entertainment.  Meal entertainment, if no exemption apply, will attract Fringe Benefit Tax (FBT) which is 47% of the taxable value. This means you would be paying more tax than the deduction available to you.  It is important to know what types of situation will be treated as Entertainment.

 

In order to determine when food and drink provided during client meeting is treated as Entertainment, we must consider the following factors:

 

  1. Why is the food or drink being provided?
  2. Providing refreshments (e.g. tea, coffee etc) – not entertainment and is tax deductible
  3. Providing in a social situation (e.g. beer or wine) – more likely entertainment
  4. What type of food or drink is being provided?
  5. Light Meal (e.g. morning tea) – less likely to be entertainment
  6. Elaborate Meals (e.g. Lobster cordon bleu) - more likely entertainment
  7. When is the food or drink being provided?
  8. During work hours (including travel time and overtime) – less likely to be entertainment as it may be for a work related function
  9. Outside work hours – more likely entertainment
  10. Where is food or drink being provided
  11. Provided on business premises – less likely to be entertainment
  12. Provided off site or at venue – more likely entertainment

 

If you have any questions or something is not quite clear then please give us a call.

Katrina Hoiberg

Accountant
Sunshine Coast office

Latest News

Episode 77 FS360 Podcast - Navigating Inheritances

17 January 2025
Navigating Inheritances. Nicholes Family Law Partners Nadine Udorovic and Bec Dahl chat to Danny Archer and Damian McMahon. Together, they delve into the complexities of inheritances, offering valuable insights from both legal and financial perspectives on how to navigate this important topic.

Financial Planning Wrap for 2024

18 December 2024
Watch the video above from Thayne. As 2024 comes to a close I thought I'd take the opportunity and send a thank you note to you all as gratitude for your continued support and loyalty. Throughout 2024 we have experienced; 1. Exceptional investment returns from all asset classes and sectors: ASX 200 up 23% S&P 500 up 30% AUST. Bonds up ~4.5% INTERNATIONAL Bonds up ~6% Aust Retail Property Trust up 39% 2. This hopefully reminds you all that it's best to remain invested even when economic conditions are uncertain. 3. We are actively monitoring and keeping an eye on US economic data particularly to understand which direction inflation may head, how this will impact interest rates and currency valuations, will there be a resurgence of small companies, emerging markets and bond and property prices. 4. With our research team we are well positioned to keep on top of the ever changing landscape, making investment decisions to maximise returns and minimise risk with regular investment committee meetings and analysis of data. 5. For many of our actively managed investment portfolios we ranked in the top 5 if not top 10 of throughout the course of the year which is a testament to the structure of Mulcahy & Co offices, people, systems and processes that we continue to build on to provide a quality service and outcomes to you all. 6. Please remember here at Mulcahy & Co the Financial Planning team is a part of a bigger network incorporating Accounting, Lending and Legal to deliver Financial Security 360 to make sure all of your financial needs are met and complement each other to achieve your goals and objectives. Once again I'd like to thank you for your support and wish you and your families a Merry Christmas and happy new year. The Mulcahy & Co Financial Planning Team

Episode 76 FS360 Podcast - Toowoomba Office

1 November 2024
We meet Accounting Partner Eamon and Mark from Compass Business Accountants who has joined the Mulcahy & Co Group operating from our Toowoomba, Queensland office. Host Gavin Nash talks to the pair who are operating from this thriving inland city and what services they offer their clients.
Episode 74 - FS360 Podcast - Assisting Small Business - Part 2

Episode 74 - FS360 Podcast - Assisting Small Business - Part 2

23 October 2024
Episode 74
Show More
Share by: