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is cost of Christmas party tax deductible
01-12-2012, 01:02 PM
Post: #1
is cost of Christmas party tax deductible
I would like to know if the cost of a company christmas party is tax deductible?
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01-12-2012, 01:10 PM
Post: #2
RE: is cost of Christmas party tax deductible
The Income Tax Act generally restricts the deduction for food, beverages, and entertainment expenses to 50% of the amount actually paid to earn income.

There are several exceptions where a taxpayer is permitted to claim 100% of the expenditure. To answer your question:
A taxpayer can deduct 100% of the food, beverage and entertainment expenses for six or fewer special events held during a calendar year. These events must be held at a particular place of business (such as the taxpayer's business premises, hotel, restaurant, etc.). The food, beverages, and entertainment must be generally available to all employees of the business. This would include events such as a company Christmas party.
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06-14-2014, 06:30 AM
Post: #3
RE: is cost of Christmas party tax deductible
(01-12-2012 01:10 PM)taxtips Wrote:  The Income Tax Act generally restricts the deduction for food, beverages, and entertainment expenses to 50% of the amount actually paid to earn income.

There are several exceptions where a taxpayer is permitted to claim 100% of the expenditure. To answer your question:
A taxpayer can deduct 100% of the food, beverage and entertainment expenses for six or fewer special events held during a calendar year. These events must be held at a particular place of business (such as the taxpayer's business premises, hotel, restaurant, etc.). The food, beverages, and entertainment must be generally available to all employees of the business. This would include events such as a company Christmas party.
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01-07-2015, 07:03 AM
Post: #4
RE: is cost of Christmas party tax deductible
List of amounts than can be claimed as an expense can be found on the CRA website.

Refer to http://www.cra-arc.gc.ca/tx/bsnss/tpcs/s...u-eng.html .

Sincerely,
Madan CA
http://www.madanca.com
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