Entertainment Expenses Quiz

Published by dimensionsadmin on

Answer these quick questions to help find out if you know how entertainment expenses work for your business

Questions: How must GST can you claim back in each of these circumstances:

  1. A company is having a Christmas party for the employees at work, in the evening.  There is food and drink provided – 50% or 100%

  2. A monthly team meeting held in the company boardroom, light refreshments are provided – 50% or 100%

  3. Food and Drinks Gifts are given out at Xmas Time – 50% or 100%


Answers:

  1. 50% – there is a private element due to it being after work hours and is not a part of helping the business earn gross income.

  2. 100% – a light meal has been provided and its part of the teams employment, it is also part of earning gross income. All seminar, courses and conferences held of site are 100% claimable as well.

  3. 50% – food and drink provide a private benefit to the recipient and a business benefit to the taxpayer are only 50% deductible, some gift items are 100% that are not food or drinks 

Categories: Tips & Tricks

Leave a Reply

Your email address will not be published. Required fields are marked *