Entertainment Expense

 

The IRB has issued a revised Public Ruling on the above-mentioned in 22.10.2008.

The new PR give a guide in ascertaining deductibility of Entertainment Expense as follow:

First check is it fall under S18 entertainment expense, if not not allowed but may check if it can be classified to other type of expense.

Secondly test if it satisfied S33(1) wholly and exclusively test, if fail no deduction is allowed.

If pass the S33(1) test, check against S39(1)(i)-(viii) for 100% deduction, otherwise 50% only deductible.

For more comprehensive analysis refer Summary of Entertainment Expense