Is lunch meeting with mortgage broker deductible?
- Thread starter srini
- Start date
I doubt it
I wouldn't push it, so I'll bite and say.....I doubt it, unless you are doing mortgage business for an entity such as a family trust and then only the catering of this (on your premises outside of a restaurant) or ditto to the mortage broker if he/she is catering for you at their business premises.
I'd be happy to hear otherwise and any other creative alternatives.......
I wouldn't push it, so I'll bite and say.....I doubt it, unless you are doing mortgage business for an entity such as a family trust and then only the catering of this (on your premises outside of a restaurant) or ditto to the mortage broker if he/she is catering for you at their business premises.
I'd be happy to hear otherwise and any other creative alternatives.......
As per Mr Y.
See the example given of a business lunch in s.32-10(2) ITAA97.
Cheers,
Rob
Interesting Ruling to consider is PBR 91001. If provided through a company may not necessarily constitute meal entertainment for FBT purposes.
http://www.ato.gov.au/corporate/content.aspx?doc=/rba/content/91001.htm
http://www.ato.gov.au/corporate/content.aspx?doc=/rba/content/91001.htm
You mean if an employer (indirectly) provided a light meal during a working day for the sustenance of an employee, this would not be regarded as entertainment in the context of this pbr even though not consumed on business premises.
The ATO is usually more strict on "self entertainment", where FBT clawback cannot operate !!
I am also amused by the slight mismatch between the definition of entertainment for FBTAA compared with ITAA.
Thanks for the reference Coastymike.
Cheers,
Rob
Agreed RobG.
Same issue arises with taxi travel. If I catch a cab from home to work it is not deductible under the general provisions as it is private travel.
However if my company pays for a taxi for me as an employee of the company from home directly to work or from work directly back to home is exempt from FBT under s58z.
Same issue arises with taxi travel. If I catch a cab from home to work it is not deductible under the general provisions as it is private travel.
However if my company pays for a taxi for me as an employee of the company from home directly to work or from work directly back to home is exempt from FBT under s58z.
The ATO doesn't allow you to deduct expensive lunches - they have to be 'reasonable'. Eating lobster for lunch isn't exactly reasonable...
agree, my accountant said the same thing,
however, for the average joe, a $25 bottle of wine may be considered as normal, but for a CEO of a bank, they wouldnt even wash their feet with a $25 bottle of wine, they'd be doing $500-$1000+ bottles of wine.
What about team building/meeting get togethers? Where do you draw the line?
The taxi journey was a result of National Australia Bank Ltd v FCT (1993) 26 ATR 503.
However, you are correct that the expense deductibility depends on the position of whoever incurs it.
e.g. relocation expenses both private and capital for an employee but are a deductible expense for an employer in attracting and retaining staff. (it may also be an exempt benefit).
The whole entertainment legislation is very unfortunate in its vague drafting. I love the definition of entertainment given in s.32-10:
s.32-10(1) Entertainment means:
(a) entertainment by way of food, drink or recreation ...
So entertainment means ... "entertainment" ... DOH !
We pay these guys too much for writing this stuff.
Cheers,
Rob
Yep. And my biggest bug bear. Education expenses for children of expats. Generally value reduced to nil but if my company pays for my children's private school fees the company gets hit with FBT.
I think more people would be disgusted if they knew that most expats were paying for their children's school fees through a company free from FBT.
I think more people would be disgusted if they knew that most expats were paying for their children's school fees through a company free from FBT.
nahhhh.. gotto cough up 10K in taxes last financial year!!.
bringing my lunch to work nowadays!!
bringing my lunch to work nowadays!!
I thought you could claim half and avoid fbt.
with the average broker on much less than 70 k gross revenue ( thats per year ) I doubt they would be shouting lobster, unless they choose 2 minute noodles
t
arolf
t
arolf
