1. Corporate Income tax
a. Generally, only 50% of the business meals and entertainment expenses are deductible in computing net income for tax purposes
b. Where the meals and /or entertainment are available to all employees, the full cost can be deducted (e.g. Christmas party, company picnic). The company is restricted to only deducting expenses related to six of these events a year.
Related tax legislation: ITA 67.1, IT-518R - Food, Beverages and Entertainment Expenses.
2. Personal tax - taxable benefit on payroll.
Unfortunately, I'm not familiar with personal tax legislation on this topic and the computation can be different case by case.
3. Sales tax need to be considered as well. Once again, I am not a sales tax person either.
For your reference only, and please ask your auditor to provide all related information.
a. Generally, only 50% of the business meals and entertainment expenses are deductible in computing net income for tax purposes
b. Where the meals and /or entertainment are available to all employees, the full cost can be deducted (e.g. Christmas party, company picnic). The company is restricted to only deducting expenses related to six of these events a year.
Related tax legislation: ITA 67.1, IT-518R - Food, Beverages and Entertainment Expenses.
2. Personal tax - taxable benefit on payroll.
Unfortunately, I'm not familiar with personal tax legislation on this topic and the computation can be different case by case.
3. Sales tax need to be considered as well. Once again, I am not a sales tax person either.
For your reference only, and please ask your auditor to provide all related information.