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Tuesday, 3 May 1994
Page: 111

(Question No. 1089)

Senator Watson asked the Minister representing the Treasurer, upon notice, on 24 February 1994:

  With reference to the statement by the Assistant Treasurer (Mr Gear) to Parliament on 8 February 1994 clarifying the Government's position on fringe benefits rules relating to entertainment expenses, which notes that the proposed amendment will remove the confusion and unnecessary compliance costs and that the Government is concerned to make the tax system more efficient and less complex:

  (1) Does the Treasurer propose to include in the remedial legislation to implement these changes some statement as to the manner in which taxpayers can apportion expenses incurred where entertainment is provided both to employees and non-employees.

  (2) Will the legislation allow a pro-rata approach or will taxpayers be required to keep detailed notes about what each party consumed during the course of the entertainment.

Senator Cook —The Assistant Treasurer has provided the following answer to the honourable senator's question:

  (1) No. However, the Australian Taxation Office issued Taxation Determination TD94/25 on 31 March 1994 which sets out a method that will be accepted for apportioning entertainment between employees and non-employees.

  (2) The Determination provides that where the entertainment benefit provided relates to both employees and non-employees, the Australian Taxation Office will accept the use of a `per head' basis of apportionment.