Entertainment expenses - gifts of food and drink 

The entertainment expense rules limit tax deductions for certain types of expenses to 50% of the cost.

One type of expense covered is the expense of providing food and drink off business premises.

This means that spending on things like chocolates or a bottle of wine to give as gifts to customers, clients or suppliers for example, is only 50% deductible.

If the items are purchased as a gift basket or together with other items that aren't food and drink, the expense must be apportioned between fully deductible and not fully deductible.

Reminders

7 October

2015 Fringe benefit shareholder/employee income year tax return (IR421) due if you have a November balance date and don't have a tax agent with a valid extension of time.

20 October

Employer returns and payment due for the period ending 30 September 2016 (if you have less than $500,000 PAYE a year). Fringe benefit tax quarterly return (IR420)is due for the quarter ending 30 September 2016.

28 October

GST return and payment due for the period ending 30 September 2016.

Note

If a due date falls on a weekend, public holiday or provincial anniversary day, we can receive your return and payment on the next working day without a penalty being applied.