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Edition 20 - Record-Keeping for Entertainment

Edition 20 - Record-Keeping for Entertainment

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Most businesses will incur some type of expenditure during a year on food, drink, amusement or other entertainment related activity. When expenses of this nature are incurred, the challenge is to determine what portion of such expenditure relates to “entertainment” and is hence subject to Fringe Benefits Tax (FBT), what portion is tax deductible, and whether the input tax credits that have been paid in respect to such expenditure are claimable on a BAS. This editions provides an introduction for bookkeepers to the intricacies of entertainment and some extremely handy tables setting out the type of expenditure, and its FBT, GST and tax deductible nature.


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