Hi
I wanted to know the tax deductibility of payment of food such as snacks and coffee at a restaurant for cllients.
Thanks in advance :)
Hi
I wanted to know the tax deductibility of payment of food such as snacks and coffee at a restaurant for cllients.
Thanks in advance :)
Hi @Palak123,
There are a few factors involved when working out the deductibility of meals, and as a general rule, you can only claim deductions for expenses directly related to generating income. So in order to claim for the food and coffee, you need to be able to prove this is the case.
It might be worthwhile to look at the information in the TR 97/17- Income tax and fringe benefits tax: entertainment by way of food or drink to help determined whether your provision of meals are considered 'entertainment' or not. Point 25 describes in detail the different ways food and beverages are provided to employees, employers and/ or clients and whether it could be claimed as a tax deduction and if Fringe Benefit Tax (FBT) applies.
Hello @Palak123
Food and snacks are private expenses, so unfortunately you can't claim them as a deduction. You may want to take a look at our website to see what other deductions you can claim.
Thanks for your quick response. It was helpul @TonyATO
Hi @Palak123,
There are a few factors involved when working out the deductibility of meals, and as a general rule, you can only claim deductions for expenses directly related to generating income. So in order to claim for the food and coffee, you need to be able to prove this is the case.
It might be worthwhile to look at the information in the TR 97/17- Income tax and fringe benefits tax: entertainment by way of food or drink to help determined whether your provision of meals are considered 'entertainment' or not. Point 25 describes in detail the different ways food and beverages are provided to employees, employers and/ or clients and whether it could be claimed as a tax deduction and if Fringe Benefit Tax (FBT) applies.
Thanks for your quick response @RachATO . It was helpful :)
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