We are a motor vehicle dealership. If we were to fly a prospective buyer to the Sydney Motor Show for the day with one of our sales consultants, is GST applicable on the airfares, meals, taxis, etc? Or is it treated as non-deductible/non-GST expense? (i.e. an entertainment type expense).

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My client holds one share in a company with a paid up capital of $2. In October last year, the other shareholder was killed in a motor vehicle accident.Prior to his death, the company took out a life insurance policy on both shareholders. The insurance policy settlement on the deceased shareholder is over $200,000. My client wishes to pay the insurance money to the deceased shareholder’s spouse and wishes the spouse to transfer the share she holds as personal representative of the deceased shareholder to my client.The insurance policy was supposed to have been taken out in the name of the shareholder with the surviving shareholder to benefit from the death of the other shareholder with that money being used to buy out the deceased spouse’s interest in the business. This did not happen and somehow the company was the recipient of the insurance policy. Notwithstanding that the insurance policy should have been in the name of the shareholders and not the company, it was always the intent of the shareholders that the insurance money should be used to payout the spouse of the deceased shareholder.What are the tax implications for:The company if it pays the money to the spouse; andThe spouse if she transfers the share for $1 and receives the insurance payout.

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Our client is a share trader. Can he adopt either cost or market value for his closing share trading stock on hand?

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