Income tax and GST – Treatment of meal expenses
This statement covers the income tax and GST treatment of meal expenses incurred by self-employed persons. It also discusses the treatment of meal allowances paid to employees to illustrate the differences with the treatment of self-employed persons, and also the treatment of entertainment expenditure for the same reason. The statement is accompanied by a fact sheet, which includes a guide to likely income tax treatment of meal expenses for different scenarios.
See:
Income Tax Act 2007 sections CW 17C, CW 17CB, CX 5, DA 1, DA 2(2), Subpart DD
Goods and Services Tax Act 1985 sections 3A, 20(3), 20(3C)
Buckley and Young Limited v CIR (1978) 3 NZTC 61,271 (CA)
CIR v Banks (1978) 3 NZTC 61,236 (CA)
CIR v Haenga (1985) 7 NZTC 5,198 at 5,207 (CA)
Hunter v CIR (1989) 11 NZTC 6,242 at 6,258
Hunter v CIR (1990) 12 NZTC 7,169 (CA)
Case A12 (1974) 1 NZTC 60,088
Case B14 (1975) 1 NZTC 60,108
Case E80 (1982) 5 NZTC 59,421
Case F117 (1984) 6 NZTC 60,125
Case G57 (1987) 7 NZTC 1,251
Case H82 (1986) 8 NZTC 567
Case M128 (1990) 12 NZTC 2,825
Case P1 (1992) 14 NZTC 4,001
Case P5 (1992) 14 NZTC 4,034
Case T16 (1997) 18 NZTC 8,095