Tax efficient gift giving
Tax effective gift giving might not be at the top of everyone’s mind but hey, we’re accountants and we can’t help it. So, for all those non-accountants, here are our top tips for giving to those you intend (and not the tax office):
Giving to your team
Christmas celebrations at your work on a working day are likely to be exempt from FBT.
Keep the cost of your celebrations per person below $300 to make sure the event is a minor benefit for FBT purposes and exempt from FBT (including meals, beverages, entertainment, etc.,).
Keep any Christmas presents below $300 per person and ensure they are ‘one-off’ gifts. They need to be ad hoc to be exempt from FBT.
You can’t deduct the cost of your Christmas celebrations for team members unless FBT applies.
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FBT: what you need to know in 2011
The FBT year runs from 1 April to 31 March. FBT is one of those areas that many employers struggle with; not because the tax is complex but because of the level of detail required to fulfill your obligations.
We explore:
- Key FBT issues
- How do I know if I need to pay FBT?
- What is exempt from FBT?
- Useful FBT links
Ho ho ho humbug: Avoid the Christmas tax scrooge
If you’re planning your Christmas budget for your team and your clients there are a couple of things you need to know to keep the Christmas tax scrooge from ruining your Christmas celebrations. We take a look at what you can and can’t deduct and what is and isn’t likely to incur Fringe Benefits Tax (FBT).
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Q. We are new into business – our company commenced trading last year. A friend has mentioned to us to watch out for fringe benefits tax. Apparently it is reported on at a different time of the year to our company tax return. Can you give us any advice?
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