Hi,
I am seeking clarification regarding the tax treatment of client meeting meal expenses.
Scenario:
A company incurs meal expenses when meeting with clients to discuss business matters (e.g. strategy discussions, project meetings, referrals). The meals are directly related to carrying on the business and generating assessable income, and valid tax invoices are held.
As this is a start up business, the director currently has no personal income. If the expenses are treated as non-deductible entertainment, there would be no tax benefit available.
In this situation, can client meeting meal expenses be claimed as business expenses (incl GST input tax credits), or classified as “entertainment” and treated as non-deductible?
I would appreciate clarification on the technical basis and any relevant ATO rulings or guidance that apply to this scenario.
Thank you in advance for your assistance.
Kind regards,
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