Trust Legislation Changes
October 22, 2020
End of Year Housekeeping
December 17, 2020

Entertainment & Gifts

It is nearly Christmas time and we know you are ready to celebrate the silly season in style.

We do not want to put a dampener on the festive spirit but wanted to remind you of what you can and cannot claim as an entertainment expense for your business.

Santa should not be the only one writing a list 😊 When providing entertainment to your staff or clients, make sure you keep a clear list of the following:

  • The date on which the expense was incurred
  • The names of the people involved
  • The business they represent
  • The reason for the entertainment, for example, a thank you or a potential new client meeting

You may also like to give your clients a gift at Christmas time. The deductibility of this gift will depend on the type of gift you give. If the gift is one that relates to entertainment (food and beverage) then it will only be 50% deductible.

Below is a list of potential gift ideas and their tax deductibility:

Gift Guide

50% Deductible

Bottle of wine or beer
Meal voucher
Basket of food and beverage items
Box of chocolates or biscuits
Christmas ham
Friday night drinks for staff or clients in the office or at a venue
Meal at a restaurant for staff or clients during a social function
Taking a client out for a meal at a restaurant

100% Deductible

Providing morning and afternoon tea for your team in the office
Calendar
Book or Gift Voucher
Tickets to a rugby game (but not corporate entertainment)
Movie tickets
Gifts (not food or beverage)

Please contact us if you require further clarification.

Carolyn Milliken