Tax treatment of employer provided meals clarified: small daily meal cost paid directly to caterer not taxable to employee. The circular modifies prior guidance on expenditure for food or beverages supplied to employees, treating such expenditure as entertainment expenditure and instructing assessing officers on its assessment. It substitutes the prior employee-tax statement with a provision that, where the employer pays the caterer, restaurant, eating place or canteen directly, the employee will not be taxed on a small daily meal benefit up to the prescribed administrative threshold, and directs officers to implement this concession.