Gifts to Audit Clients

Barry White is an Australian resident. He works full-time as a senior audit manager for a chartered accounting firm, Binder Hamlyn, based in Brisbane city. Barry advises you that during December 2021 he gave several Christmas gifts to the major audit clients of the firm. He does not consider these clients friends but in keeping with the Christmas spirit, he purchased these gifts as a thank you for being good faithful clients during the year.

The breakdown of his gifts totalling $328 was as follows:

$

• Boxes of chocolates 80
• Christmas hampers 186
• Bottle of French champagne (for one client) 62

Barry is not reimbursed for any of these expenses by his employer

Question. Being the gifts provided to audit clients totalling $328. You are to advise Barry exactly how much is tax-deductible and reasons why (or why not)?