Document ID: chunk:federal_register_of_legislation:C2025C00120:section:37
Version: federal_register_of_legislation:C2025C00120
Segment Type: section
Provision Reference: s 37
Character Range: 126841–128901

37  Reduction of taxable value—otherwise deductible rule
  Where:
 (a) the recipient of a board fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer;
 (b) if the recipient had, at the time when the benefit was provided, incurred and paid unreimbursed expenditure (in this section called the gross expenditure), in respect of the provision of the recipients meal, equal to the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the board fringe benefit in relation to the year of tax—a deduction (in this section called the gross deduction) would, or would but for Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable to the recipient under section 8‑1 of the Income Tax Assessment Act 1997 in respect of the whole or a part of the gross expenditure; and
 (c) the amount (in this section called the notional deduction) calculated in accordance with the formula:

  where:
           GD is the gross deduction; and
           RD is:
 (i) if there is no recipients contribution in relation to the board fringe benefit—nil; or
 (ii) if there is a recipients contribution in relation to the board fringe benefit equal to, or calculated by reference to, an amount of consideration paid by the recipient to the provider or to the employer in respect of the provision of the recipients meal—the amount (if any) that would, or that would but for Divisions 28 and 900 of the Income Tax Assessment Act 1997, have been allowable to the recipient under section 8‑1 of the Income Tax Assessment Act 1997 in respect of the whole or a part of that consideration if that consideration had been incurred and paid by the recipient at the time when the benefit was provided;
  exceeds nil;
the amount that, but for this section and Division 14, would be the taxable value of that fringe benefit in relation to the year of tax shall be reduced by the notional deduction.

Division 9A—Meal entertainment

Subdivision A—Meal entertainment