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It's quite common, especially at Christmas time, for employers to give small gifts to their employees as well as third parties such as clients, suppliers, customers, contractors etc. This BKB clarifies the rules in this area. Without an understanding of this topic, bookkeepers may incorrectly account for GST on these gifts, and also may make incorrect journal entries which can impact the way in which the accountant deals with FBT and income tax at year-end.
