FBT 2012 - Entertainment - Tax Exempt Bodies

Overview

This intensive seminar comprehensively covers the fundamental application of Fringe Benefit Tax (FBT) to the provision of entertainment to employees in the form of meal entertainment benefits, property benefits, expense payment benefits and residual benefits, including an employer’s obligation to comply with annual reporting requirements where entertainment is provided to employees.

The seminar provides not only coverage of the specific FBT outcomes and reporting requirements when providing entertainment benefits to employees, but also imparts to attendees the tips, traps and pitfalls that Tax Exempt employers should be wary of in the context of recent legislation, ATO rulings, and court judgements.

Topics covered

This seminar will comprehensively cover:

• The core elements of what constitutes “entertainment” for income tax and FBT purposes and the practical application of these elements in order to assess whether or not entertainment is actually provided
• The fundamental distinction between entertainment and sustenance, including case studies and examples relevant to each concept
• An analysis of the core principles outlined in the Commissioner’s ruling TR 97/17 for identifying and quantifying “entertainment”, including the key indicators for when expenditure constitutes entertainment expenditure whether through the provision of food and drink or otherwise
• Instances when items of property constitute entertainment, including the effect of alcohol in giving rise to entertainment for income tax and FBT purposes
• Distinguishing between meal entertainment and non-meal entertainment and the FBT treatment applicable to each
• A comprehensive analysis of the prescribed methodologies for calculating the taxable value of entertainment benefits, including:
  • Actual method;
  • 50/50 method; and
  • 12-week register method

• The categories of FBT exemptions applicable to the provision of entertainment benefits and the specific requirements for accessing the various exemptions, including:

•     The $300 minor benefit exemption; and
• The on-premises consumption exemption    

• The definition of tax exempt body entertainment expenditure and the FBT treatment applied in respect of tax exempt body entertainment
• The availability of the $300 minor benefit exemption to tax exempt bodies on provision of entertainment benefits to employees
• The prescribed methodologies to calculate the taxable value of tax exempt body entertainment benefits, including specific application of the actual and 505/50 methods
• The identification and FBT treatment of Entertainment Facility Leasing Expenditure (EFLE)
• The interaction and overlapping effect between income tax, FBT and GST as they apply to entertainment

Learning objectives

This intensive FBT seminar will be of particular value to line managers, supervisory staff and other employees who have ongoing involvement in:

• the administration and management of payroll
• salary packaging arrangements
• the provision and allocation of fringe benefits
• the preparation, review and management of FBT returns, FBT record-keeping, FBT reporting and accounting

Additional materials

• Comprehensive technical paper
• Presenter notes
• CPD certificate = 2 hours/points

Presenter

Peter Adams M Tax Law, FTIA CA Tax Director