标题: Entertainment FBT Calculation key procedures and steps [打印本页] 作者: Alexyu 时间: 2016-7-3 00:07 标题: Entertainment FBT Calculation key procedures and steps Before start calculate FBT Tax amount and expense, two key information should be noticed:
1) The FBT year runs from 1 April to 31 March
2) Lodgement date is normally by 21st May
For Entertainment FBT Calculation, following procedures and steps should be noticed:
1) Find relevant GL account in the accounting system, Export the transactions data to excel file.
2) Review all the transactions firstly, as FBT calculation also involved internal control on such entertainment expenses. The reviewing should focus on following area:
a) Transaction description. Whether description contained reasonable information for such expense;
b) Expense amount. Whether the amount is resonable, if too hight or any descrepancy, it should be highlighted and raise report to management's attention.
c) Miner expense account. Normally, miner benefit (< 300, GST inclusive) for employees will be exempt FBT. Therefore, the ledger for staff benefit less than $270 (GST exclusive) should be reviewed carefully so as to prevent from recording over $270 expenses.
d) Whether the expense was posted to right account.
3) Calculating FBT taxable value and tax amount on organised data.
a) FBT expense should be split by cost centers, by states;
b) Be noticed, if the entertainment expense was paid by employee to entertain clients, such expense should use 50% rule to calculate employees' part FBT expense and then apply to payroll tax calculation.