Tax Savings Strategy 222 | Christmas Party
In reality, most Christmas parties are not held on business premises, but at a restaurant. If the cost of food, drinks and alcohol is kept to less than $300 per employee, no FBT is payable by the employer. Unfortunately for the employer, they will not be able to claim a tax deduction or GST credit for the cost.
A non-entertainment gift valued at less than $300 given to an employee will be tax deductible to the employer. Tax deductible gifts include:
- A coffee machine.
- Books or novels.
- Flowers or chocolates.
- Christmas or gift hamper.
- Bottle of wine, spirits or liqueur.
- A bottle of perfume or aftershave.
- Vouchers for retailers e.g. David Jones, Myers, Jack London, etc.
- Handbags or wallets.
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2