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Q: A company is selling a membership plan and a free gift without business logo will be given for new member. Is the free gift eligible for tax deduction?
A: As the free gift given out is related wholly to sales, it is eligible for 100% tax deduction as per the Proviso (vii) to Paragraph 39(1)(l) of the Income Tax Act 1967.
Wishing you plentiful tax savings!
YYC Tax Guru