Tax rules can bite World Cup hosts

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Businesses hosting clients at Rugby World Cup events have been advised to brush up on tax rules.

Deloitte tax national technical director Robyn Walker said as a general rule 50 per cent of entertainment for marketing or advertising purposes could be written off against tax.

The Inland Revenue Department's entertainment regime sets out what can be deducted. General types of expenditure subject to the list include corporate boxes, marquees, tents and other exclusive areas.

"If you are taking somebody to the box that's only 50 per cent deductable and that includes the price of the ticket to get into the stadium and all of your food and drink when you're there."

Accommodation and holiday homes would qualify, as would other entertainment away from the ground.

"If you were flying clients around the country it would potentially be 50 per cent deductable," said Walker. "Then there is general entertainment on or off the premises, restaurant, pub, office."

She also said instead of claiming 100 per cent of GST paid, businesses could claim only half of that.

Businesses new to entertaining should be careful, she said. "You want to make sure you know whether it's deductable. It could factor in on how much you're willing to spend."

She said the IRD would detect any slip-ups.