Bean Blog

Christmas Crack Down

December 13, 2016

If you are thinking of buying Christmas gift baskets, wine, ham or restaurant vouchers for your clients or staff – beware!  The IRD have stated that they will only allow a 50% deduction for your Christmas function or work gifts if provided to people such as employees, clients, suppliers or prospective clients and suppliers.

Previously the IRD allowed a 100% deduction for costs incurred on providing gifts to clients and suppliers that contained food or beverages.  Now, however, only 50% of such costs will be tax deductible and the IRD considers that where such gifts such as gift baskets contain non-food or beverage items, costs must be apportioned.  If this policy is not adhered to, this may result in a tax shortfall penalty being imposed.

For further information or to discuss this further, please call your Giles & Liew Account Manager.

About Kylie Liew

Kylie turns vision into value using digital innovation and strategic business planning to drive business success.

As a Qualifying Principal and member of Chartered Accountants Australia and New Zealand (CA ANZ), MYOB Certified Consultant and Young Accountant of the Year 2019, Kylie's combined history of providing Business Advisory and Accounting services to clients, together with experience in Internal Change Management and Business Development means she understands the complexities of SME ownership.

Digital disruption of the Accounting industry presents a unique opportunity to redefine the role of the Business Advisor.  Kylie is committed to challenging the stereotype and exploring innovative ways to achieve growth and create success.

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