Key Dates:
November 21
- Lodge & pay October 2018 monthly business activity statements
November 25
- Lodge and pay quarterly activity statements for September quarter if lodged electronically through a tax or BAS agent.
- Trust Resolutions re beneficiaries
- Company resolution for directors fees that are definitely committed
November 28
- Lodge & pay the superannuation guarantee charge (SGC) and lodge a SGC statement for employers who failed to pay the minimum superannuation guarantee contributions by 28 October 2018.
- The SGC is NOT tax deductible
December 1
- Pay income tax for companies and superfunds where lodgements was due 31 October 2018
December 21
- Lodge and pay November 2018 monthly business activity statement
ATO: – “The Xmas Grinch”
– Xmas Parties & Entertainment
When it comes to “Work Christmas Parties and deductions” the most important tax factor to consider is whether or not your party involves “entertainment”.
The tax office considers an event to involve “entertainment” if:
- Alcohol is served
- It is held at a restaurant, café or any venue off business premises
- If the event involves “entertainment” it is not deductible.
Christmas Tax Planning
For the entire cost of a Christmas party to be a tax deductible expense with no liability for FBT (Fringe Benefits Tax) the following criteria must be met:
- Held on your business premises
- Held on a work day
- No alcohol
- Held for employees, suppliers and business associates
- Food: light meal or “finger food”
- No employee associates spouses, children etc) to be present
- If cost per attendee (employee) is less than $300 no FBT applicable
Other considerations
- Non- Entertainment gifts to third parties such as suppliers etc is not subject to FBT and are tax deductible to the employer who can also claim the GST credits
Best Gifts that are not entertainment (but keep under $300) include:
- Christmas hampers
- Bottles of alcohol, skin care items
- Gift vouchers, perfumes and pen sets, so celebrate the Xmas season
Merry Christmas from all at Christian Fox and a very Happy New Year
If you have any queries regarding the above matters please do not hesitate calling myself, Andre Christian, Accredited Superfund Auditor or either of my partners:
- Jennifer Chen: Tax Partner or
- Richard Wakefield: Financial Planning Partner
- On (02) 9829 3111 For a free consultation
