FBT Q&A – employee attending gala awards dinner

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Question

We are sending an employee on overnight travel to attend a business awards gala dinner. There is no conference or any other activity other than the gala dinner which we have been nominated for an award.

Is this meal entertainment for FBT purposes, and if so, are all travel and accommodation costs associated with the gala dinner included in the FBT taxable value?

Answer

A reference to the provision of meal entertainment in the FBTAA is a reference to the provision of:

  • entertainment by way of food or drink; or
  • accommodation or travel in connection with, or for the purpose of facilitating, entertainment to which paragraph (a) applies; or
  • the payment or reimbursement of expenses incurred in providing something covered by paragraph (a) or (b).

The sole purpose of the travel appears to be the attendance at the awards gala dinner and so it is difficult to see how the expenditure incurred does not relate to the provision of meal entertainment.

 

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