Philip Arndt wrote:
> Sorry, why can't you claim the GST on that, if you're registered? Not  
> being tricky I honestly want to know.
> Surely you could run a tab and get them to print out a tax invoice for  
> you.. must be common practice for pubs.

IIRC you can claim half of entertainment costs.

So, yes, say you run up $100 at the bar, you can claim back the GST on 
half, ie $50.  You can also put $44.44 in as an expense (ie, exc GST 
amount).

The consideration here is FBT. Fringe Benefit Tax.

What the IRD is attempting to avoid is, you and I just taking each other 
to the pub each week and taking turns at paying, then putting the whole 
lot down as business expense.  (AIUI that did actually used to happen) 
That's just simply not fair and reasonable.  The objective of the rule 
is to encrouge you to do entertainment to drive more business, not just 
take out your mates for drinking games.

HTH

Cheers Don

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