Christmas- The Grinch tax deductions and other celebrations

Review Plan Reframe Revitalise

Key Dates:

November 21

• October 2017 monthly activity statements due for payment and lodgement

November 25

• Due date to lodge and pay quarterly activity statements for September quarter if lodged electronically through a tax or BAS agent.

• Trust Resolutions re beneficiaries

• resolution for directors fees that are definitely committed

November 28

• Due date to 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 2017.

• The SGC is NOT tax deductible

ATO -The Grinch – Entertainment

When it comes to work Christmas parties and deductions one most important factor to consider is whether or not your party involves “entertainment”

The tax office considers an event to involve “entertainment” if:.

• Alcohol is served regardless of the venue

• It is held at a restaurant, café or any venue off business premises

• If the event involves “entertainment” it is not deductible.

Year End 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

• Provision of a 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

• Minor benefit exemption under $300 GST inclusive for FBT but not tax deductible

• 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

Gifts that do not constitute entertainment include:

• Christmas hampers

• Bottles of alcohol

• Gift vouchers

• Perfume

• Pen sets

Merry Christmas from all at Christian Fox

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Andre Christian
Andre Christian is a Registered Company Auditor having gained his initial training at Ernst & Young before becoming Audit Manager at Grant Thornton National firm, Thompson Douglas & Co Chartered Accountants. His passion for business improvement, more efficient trading structures and preparing business valuations for both clients and expert court reports led him to form his own practice Christian Fox Accountants. He is a long and proud resident of the Macarthur region with a young family Having grown up in Long Point, Macquarie Fields Scenic Nature Reserve. He took over the previous offices of Arthur Young Chartered Accountants where they were based in Ingleburn. A current Director of a local Not for Profit Organisation assisting community health issues in Macarthur and an active local Rotarian. Proud to be involved with the Smarter Macarthur Business Magazine as a founding contributor to Smarter Advice B2B.