Entertainment expenditure is limited to a 50% deduction if it falls within the following:
- Corporate Boxes
- Holiday Accommodation
- Pleasure Craft
- Food & Beverages consumed at any of the above or in other specific circumstances, for example:
- incidentally at any of the three types of entertainment above, eg, alcohol and food provided in a corporate box
- away from the taxpayer's business premises, such as a business lunch at a restaurant
- on the taxpayer's business premises at a party, reception, celebration meal, or other similar social function, such as a Christmas party for all staff, held on the business premises (excluding everyday meals provided at a staff cafeteria)
- at any event or function, on or away from your business premises for the purpose of staff morale or goodwill, such as a Friday night 'shout' at the pub
- in an area of the business premises reserved for use at the time by senior staff and not open to other staff, such as an executive dining room used to entertain clients
