What is often described as a tax is in reality not a tax, but instead a limitation on the deductibility of expenditure for taxation purposes.
As with all business expenses, for any entertainment expense to be deductible it must have been incurred in the course of operating a business or earning taxable income (and not be private in nature).
Some entertainment expenditure is 100% deductible (e.g. meals while on travel for the business but not meals provided to a business contact while on travel: meals at a conference provided that the conference or seminar is longer than 4 hours in duration). Where not 100% deductible, entertainment expenditure is subject to a 50% deduction regime.
This regime allows only a 50% deduction for :