Taxation Laws Amendment Act (No. 2) 1994 (82 of 1994)

Part 5   AMENDMENTS RELATING TO ENTERTAINMENT EXPENSE PAYMENTS

Division 2   Amendment of the Fringe Benefits Tax Assessment Act 1986

130   Insertion of new section

After section 63 of the Principal Act the following section is inserted:

Reduction of taxable value in respect of entertainment component of certain fringe benefits

Taxable value reduced by entertainment percentage

"63A.(1) If:

(a) the recipient of an expense payment fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer; and

(b) a percentage of the recipients expenditure is in respect of the provision of entertainment (within the meaning of subsection 51AE(3) of the Income Tax Assessment Act 1936) other than to the recipient or an associate of the recipient;

the amount that, apart from this subsection, would be the taxable value of the expense payment fringe benefit in relation to the year of tax is reduced by that percentage.

Avoidance of double reduction

"(2) If the taxable value of the expense payment fringe benefit has been reduced under Division 5 by reason of a particular matter or thing, the taxable value of the fringe benefit is not reduced under this section in respect of the same matter or thing.".