Document ID: chunk:federal_register_of_legislation:C2025C00029:section:129:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 129 (pt 8/10)
Character Range: 746598–749695

Commissioner may treat you as having incurred entertainment expense

32‑75  Commissioner may treat you as having incurred entertainment expense
  If:
 (a) you incur a loss or outgoing under an *arrangement; and
 (b) someone provides *entertainment under the arrangement to you or someone else; and
 (c) section 32‑5 would have stopped you deducting the loss or outgoing under section 8‑1 (which deals with general deductions) if you had incurred it in respect of providing that entertainment;
this Division applies to you as if you had incurred the loss or outgoing in providing that entertainment, to the extent (if any) that the Commissioner thinks reasonable.
Note: This means that section 32‑5 will prevent you from deducting the loss or outgoing under section 8‑1 unless an exception applies.
Example: A company pays $1,000 to sponsor a football game. Under the same arrangement, the company is given a viewing box at the game. To the extent the Commissioner thinks reasonable, he or she can treat the company as having incurred the $1,000 in providing entertainment.

Subdivision 32‑F—Special rules for companies and partnerships

Table of sections
32‑80 Company directors
32‑85 Directors, employees and property of wholly‑owned group company
32‑90 Partnerships

32‑80  Company directors
  In the case of a company, these provisions cover directors of the company as if they were the company's employees:
              * item 1.1 (exception for *in‑house dining facilities) of the table in section 32‑30;
              * item 1.2 (exception for *in‑house dining facilities) of the table in section 32‑30;
              * item 1.3 (exception for *dining facilities) of the table in section 32‑30;
              * item 1.5 (exception for recreational facilities) of the table in section 32‑30;
              * item 1.8 (exception for providing your employee with an allowance) of the table in section 32‑30;
              * section 32‑55 (which defines in‑house dining facility);
              * subsection 32‑65(3) (which defines business meeting).

32‑85  Directors, employees and property of wholly‑owned group company

Employees and directors of group company
 (1) In the case of a company, these provisions cover directors and employees of another company that is a member of the same *wholly‑owned group as if they were the company's own directors and employees:
              * item 1.1 (exception for *in‑house dining facilities) of the table in section 32‑30;
              * item 1.2 (exception for *in‑house dining facilities) of the table in section 32‑30;
              * item 1.3 (exception for *dining facilities) of the table in section 32‑30;
              * item 1.5 (exception for recreational facilities) of the table in section 32‑30;
              * section 32‑55 (which defines in‑house dining facility);
              * subsection 32‑60(1) (which defines dining facility);
              * paragraph 32‑65(3)(b).

Property occupied by group company
 (2) Those provisions also cover property occupied by that other company as if the company occupied that property.

32‑90