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The ATO has recently released the following TaxationnDeterminations:
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• nTD 2016/14 states that business taxpayers are entitlednto a tax deduction for the outgoing incurred for a gift made to a former orncurrent client, if the gift is made for the purpose of producing futurenassessable income. The gift is not deductible if the outgoing is capital,nrelates to gaining “non-assessable, non-exempt” income, or is non-deductible undernanother provision.
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• nTD 2016/15 states that employer taxpayers are entitlednto a tax deduction for annual fees incurred on an airport lounge membership fornuse by employees, if that membership is provided because of the employmentnrelationship.
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Important: Clients should not act solely on the basis of the material contained in Update. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This update is issued as a helpful guide to clients and for their private information.
