TAX QUESTIONS? YOU ASK LAH!

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Q: I am a sole proprietor. I organised an annual dinner for my employees. I also invited a few suppliers and customers. Is this expenditure tax deductible?

A: If the purpose of the annual dinner is for your employees, inviting suppliers and customers to the dinner is considered incidental. Therefore, the expenditure incurred on the annual dinner is considered as entertainment for employees and is tax deductible.

Wishing you plentiful tax savings!

Zen Chow

YYC Tax Guru

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