Western Power was among the state-owned energy utilities which spent $1.5 million on entertainment during the last financial year. WA’s state-owned energy utilities spent $1.5 million on entertainment during the last financial year, documents tabled in parliament show.
The largest of the four companies, Western Power, spent $660,500 wining and dining, as well as rewarding staff and providing recreational activities. That was at least $100,000 more than last year.
Electricity retailer Synergy dished out $17,000 worth of staff rewards and paid for $266,000-worth of meals and entertainment enjoyed by both staff and clients, while corporate boxes at AFL and Western Force games consumed $170,000 of the budget. The total was slightly more than last year.
….On top of the expensive hand outs, the companies are liable for Fringe Benefits Tax of almost the same value, effectively doubling the bill.
Sourced from: http://twf.com.au/showthread.php?t=31280
Red, white or bubbles, the provision of wine usually results in some tax implications…
Wine served at a restaurant
This would normally constitute meal entertainment unless consumed whilst travelling overnight on business
Wine served at a Christmas Party or Function
This would normally constitute meal entertainment unless the minor benefit exemption applies
Wine provided to employees as a gift
This would normally constitute a property fringe benefit unless the minor benefit exemption applies
Wine provided to a client, customer or supplier as a gift
The provision of the wine would not constitute a property fringe benefit and would be deductible
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