Document background
The Client Entertainment Policy serves as a crucial governance document for organizations operating in New Zealand, establishing clear guidelines for business-related entertainment activities while ensuring compliance with local regulations. This policy becomes necessary when organizations regularly engage in client entertainment as part of their business development and relationship management activities. It includes specific guidance on entertainment spending limits, approval hierarchies, acceptable activities, and expense reporting procedures, all aligned with New Zealand's tax laws, anti-bribery regulations, and financial reporting requirements. The policy helps organizations maintain appropriate records for tax purposes, particularly regarding the 50% entertainment expense deductibility rule under New Zealand tax law, while promoting ethical business practices and protecting the organization from reputational and compliance risks.
