Are gifts to clients tax-deductible for accountants and financial planners?

ATO issues ruling on tax deductible gifts: Taxation Determination TD 2016/14

It is good news. The Determination, dated 27 July 2016, confirms what Legal Consolidated Barristers & Solicitors has stated for a long time. An accountant or financial planner is entitled to a deduction under s 8-1 Income Tax Assessment Act 1997. This is for an expense incurred on a gift to both a past or current client. The only stipulation is that the gift is made for the purpose of producing future assessable income.

Obviously, the gift is not deductible if the outgoing or ‘expense’ is capital of nature.

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Dr Brett Davies, CTA, AIAMA, BJuris, LLB, Dip Ed, BArts(Hons), LLM, MBA, SJD
Legal Consolidated Barristers and Solicitors
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