With summer just around the corner, you may be planning a party or a day on the green with your employees.
Before you fire up the BBQ, make sure you consider the fringe benefits tax (FBT) implications of your celebration.
These will depend on:
- the amount you spend on each employee
- when and where your party is held
- who attends – is it just employees, or are partners, clients or suppliers also invited?
- the value and type of gifts you provide.
Don’t forget to keep all records relating to the entertainment-related fringe benefits you provide, including how you worked out the taxable value of benefits.
Remember, registered tax agents like the team at Paris Financial can help you with your tax! Feel free to contact our office to discuss further: (03) 8393 1000.
Source: ATO Newsroom