Blog & Resources

Can I claim a lunch with a client as a tax deduction?

Provided the lunch is light and does not contain alcohol the answer is yes.

Taxation Ruling IT 2675, states that the more elaborate the lunch becomes the more likely it is to be deemed entertainment and there will be issues with both deductibility and Fringe Benefits Tax.

Taxation Ruling (TR) 97/17 Entertainment by way of food or drink, asks that you consider 4 question.

  1. Why is the food being provided?
  2. What food is being provided?
  3. When is the food being provided?
  4. Where is the food being provided?

Answering the above will help you determine whether or not the food and drink being provided is for refreshment and sustenance or entertainment.

It should be noted that TR 97/17 states that having a lunch at a café with a client does not make it entertainment, but it is more likely to be so when compared to having the lunch at your place of work.

If you would like to discuss further please contact us:
 McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
 Phone +61 3 9428 1062

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