Summer is Here
Our thoughts turn to vacations and summer escapes. Business can be the last thing on your mind when the sun is shining and the weather is warm. It may be a good time for some reflection on the year past and what we might do to better our position and business going forward. If I can bring any financial help to your planning, please let me know.
Just a reminder - Golf is not a deductible expense for tax purposes. If it has a business reason than it may still be used as a company expense but for tax purposes it is added back before taxes are calculated. Keep track of who you entertained so you don't end up being assessed a taxable benefit. In addition, the same rules apply to yachts (we all have access to one of these) and camps of lodges (think fishing lodge). The costs associated with both of these again are not deductible.
Meals at golf courses follow the same rules as always, document who, what and why and you'll ge the standard 50% deduction.
That brings to mind the matter of GST(HST) and meals and entertainment. As only 50% of the meal is deductible for tax purposes, only 50% of the GST(HST) is recoverable as an Input Tax Credit (ITC). Also, tips are exempt from GST.
For example a $100 meal with $5 GST and a $20 tip for a total of $125. The ITC is $2.50 and the expense is $122.50.
As always if you have questions give me a call,
send an email or come and see me.
Referrals are my primary mode of growth. If you're pleased with the service level you receive, please pass on my name. If displeased, please let me know.
If there is anything we can do for you, please give us a call.
R Brenton Driscoll, CPA, CA
Monday - Thursday 8:30 am - 4:30 pm
(closed @ noon for a hour)
Fridays 8:30 am - 2:00 pm