here in Australia entertainment expenses are written off at a lower rate than other business expenses.
Sorry mate. Not really correct.
If an Australian company pays for entertainment expenses for staff, it’s considered a fringe benefit and fringe benefits tax is payable. It equates to almost the cost of the actual expense. So if a company pays $10k for an employee to take a holiday, they’ll have to pay almost $10k in fringe benefits tax, but they do get a deduction for the whole $20k, which will save them $5k in income tax.
Not really, at all.
It’s written off at the same rate, while being subject to a whole other type of tax, which means the company pays more tax, rather than less.
Ok, so the point I was originally trying to make was that claiming a yacht as an entertainment expense was less attractive. Would you agree?
