Business Christmas Parties – What are the FBT/Tax Implications?
With the festive season upon us, businesses look at holding Christmas parties and providing Christmas gifts to staff. It should be noted when they are both provided to staff, the employer may be subject to Fringe Benefits Tax (FBT). A Christmas party is considered an “entertainment benefit” and to the extent that the expenditure relates to employees or their associates attending this party, the expenses may be subject to FBT unless an exemption (e.g. the “minor benefits” exemption) applies. A…