Meal entertainment is always a problem for FBT purposes because it relates to the provision of food and drink which may not be liable to FBT depending on the circumstances.
The following are examples of meal entertainment:
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restaurants where family and clients are entertained;
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food and drinks provided at a staff social function;
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food and drinks provided to employees at functions on Friday nights;
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the cost of taking staff and their partners out to lunch; and
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cost of taxis and limousines to and from meal entertainment venues.
An employer who has provided meal entertainment fringe benefits may work out the taxable value of their meal entertainment under one of these three methods:
If you think you may have provided 'meal entertainment', we can help you choose a method to help substantially reduce the FBT payable.
Contact your Accountant at our office if you have any questions about Meal Entertainment on 07 4632 1966.
