Hi all, I am new to this site and hopefully will assist in the future.
I have a client who want to give their employees a cash gift of $300. How is this treated by the client? is it tax deductible for the employer (my client)? Is it treated similar to gift cards of $300 (FBT)?
Please provide reference to authority.
thank you for your assistance.
Hi @adamtax
It will come down to the payment itself. It is a genuine gift, with no reason, then gifts don't attract FBT.
If it is a performance or bonus payment, then it would be considered FBT with tax and super obligations.
To find out more, I have included a link that I think you will find helpful.
Hi @adamtax
It will come down to the payment itself. It is a genuine gift, with no reason, then gifts don't attract FBT.
If it is a performance or bonus payment, then it would be considered FBT with tax and super obligations.
To find out more, I have included a link that I think you will find helpful.
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