Taxation Laws Amendment (FBT Cost of Compliance) Act 1995 (145 of 1995)

Schedule 1   MEAL ENTERTAINMENT AND ENTERTAINMENT FACILITIES

Part 2   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

6   After section 51AE

Insert:

Meal entertainment-election under section 37AA of Fringe Benefits Tax

Assessment Act 1986 to use 50/50 split method

"51AEA.(1) If a meal entertainment fringe benefit arises for a

taxpayer for an FBT year and the taxpayer elects that Division 9A of

Part III of the Fringe Benefits Tax Assessment Act 1986 applies to the

taxpayer for the FBT year, and has not elected that Subdivision C of

that Division applies:

(a) for each expense incurred in the FBT year by the taxpayer in

providing meal entertainment, a deduction equal to 50% of that expense

is allowable to the taxpayer for the year of income in which it is

incurred; and

(b) no other deduction under any provision of this Act is allowable

to the taxpayer for the expense.

"(2) Expressions used in this section have the same meaning as in the

Fringe Benefits Tax Assessment Act 1986.

Meal entertainment-election under section 37CA of Fringe Benefits Tax

Assessment Act 1986 to use the 12 week register method

"51AEB.(1) If a taxpayer has made an election under section 37CA of

the Fringe Benefits Tax Assessment Act 1986:

(a) for each expense incurred in the FBT year by the taxpayer in

providing meal entertainment, a deduction equal to the amount worked

out using the following formula is allowable to the taxpayer for the

year of income in which it is incurred:

Amount of expense * Register percentage

(b) no other deduction under any provision of this Act is allowable

to the taxpayer for the expense.

"(2) The register percentage is the percentage worked out using the

formula:

[(Total deductions for register meal entertainment)/(Total register meal entertainment expenses)]*100%

where:

Total deductions for register meal entertainment means the total of

deductions that would (but for this section and section 51AEA) be

allowable to the taxpayer for expenses incurred by the taxpayer in

providing meal entertainment in the 12 week period covered by the

register kept by the employer under Subdivision B of Division 9A of the

Fringe Benefits Tax Assessment Act 1986.

Total register meal entertainment expenses means the total of expenses

incurred by the taxpayer in providing meal entertainment during that 12

week period.

"(3) Expressions used in this section have the same meaning as in the

Fringe Benefits Tax Assessment Act 1986.

Entertainment facility-election under section 152B of Fringe Benefits

Tax Assessment Act 1986 to use 50/50 split method

"51AEC.(1) If a taxpayer has made an election under section 152B of

the Fringe Benefits Tax Assessment Act 1986:

(a) for each entertainment facility leasing expense incurred in the

FBT year by the taxpayer, a deduction equal to 50% of that expense is

allowable to the taxpayer for the year of income in which it is

incurred; and

(b) no other deduction under any provision of this Act is allowable

to the taxpayer for entertainment facility leasing expenses incurred in

the FBT year.

"(2) Expressions used in this section have the same meaning as in the

Fringe Benefits Tax Assessment Act 1986.".