| FBT and Gifts to Clients |
| If gifts of alcohol or food hampers are given to clients then a deduction is allowable provided that they are taken away for private consumption (ie, not given in circumstances where there is immediate consumption such as would occur at a restaurant). |
Gifts of other items such a perfume etc would also be deductible.
NOTE: If the ?gift? has been given in circumstances in which it was associated with the provision of property or services, the recipient may be assessable on the value (but that is not your problem!).
As a general rule, any gifts provided to an employee or an associate of the employee (eg. Family members) give rise to an FBT liability in the hands of the employer because those benefits constitute a ?property fringe benefit?.
See also our article about FBT and Minor Benefits.
12th-January-2004 |
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