Four ways gifts can have different tax outcomes

  1. Gifts provided to employees or associates will be subject to FBT as it constitutes a property fringe benefit.
  2. Gifts provided to clients can be deductible under s8-1 ITAA97 as long as its not capital in nature.
  3. If a gift is given to a client for personal reasons or is of private or domestic
  4. Deduction would be denied if its entertainment for clients such as food, drink, recreational activities and travel and accommodation to do with providing entertainment.

 

Ref: https://taxandsupernewsroom.com.au/gift-can-different-tax-outcomes-depending-recipient/

 


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