Taxation Ruling IT 2675A - Income tax and fringe benefits tax: entertainment - morning and afternoon teas; light meals and in house dining facilities







Addendum: Since this ruling was issued, the Income Tax Assessment Act 1997 has been enacted meaning that section 51AE of the Income Tax Assessment Act 1936 does not have any effect after the 1997-98 year of income. In its place, Division 32 of the Income Tax Assessment Act 1997 deals with the deductibility of entertainment expenses from this date. This Addendum updates Taxation Ruling IT 2675 as follows: | (a) Omit the text of subparagraph (i); and substitute: | "'in respect of the provision of entertainment' and therefore precluded by section 32-5 of the Income Tax Assessment Act 1997 from being an allowable deduction in terms of section 8-1; or". | (b) In paragraph (b), omit 'subsection 51AE(1) of the ITAA'; substitute: 'section 32-55 of ITAA97'. | (a) Omit 'subsection 51AE(4) of the ITAA'; substitute: 'section 32-5 of the ITAA97'. | (b) Omit 'subsection 51(1) of the ITAA'; substitute 'section 8-1 of the ITAA97. | Omit 'subsection 51(1)'; insert: 'section 8-1 of ITAA97'. | (a) In subparagraph (a), omit 'subsection 51AE(4)'; substitute 'section 32-5 of ITAA97'. | (b) In subparagraph (b), omit 'subsection 51AE(5)'; substitute: 'subdivision 32-B of the ITAA97'. | Omit 'subsection 51AE(1) of the ITAA'; substitute: 'section 32-55 of ITAA97'. | (a) Omit 'subsection 51AE(4) of the ITAA'; substitute: 'section 32-5 of ITAA97'. | (b) Omit 'section 51 of that Act'; substitute: 'section 8-1 of ITAA97.' | Omit 'subsection 51AE(3) of the ITAA'; substitute: 'section 32-10 of ITAA97'. | Omit 'subsection 51(1) of the ITAA'; substitute: 'section 8-1 of the ITAA97'. | (a) Omit 'subsection 51AE(5) of the ITAA'; substitute: 'subdivision 32-B of ITAA97" | (b) Omit 'subsection 51AE(4); substitute: 'section 32-5 of ITAA97'. | (c) Omit 'subsection 51(1); substitute: 'section 8-1 of ITAA97'. | (a) Omit 'sub sub paragraph 51AE(5)(f)(i) or 51AE(5)(f)(ii)'; substitute: 'section 32.30 item 1.1 of ITAA97'. | (a) Omit 'subsection 51AE(1) of the ITAA'; substitute: 'section 32.55 of ITAA97'. | (b) Omit subparagraphs (a) (b) & (c); substitute: | Omit 'wholly or principally'; substitute: 'mainly'. | Omit the the text of the paragraph; and substitute: | 'Whether a facility is operated "mainly" for a required purpose is determined by fact degree or impression.' | (b) Omit 'wholly or principally'; substitute: 'mainly'. | Commissioner of Taxation 4 October 2006


Related rulings: IT 2675