.. It may be time to take a very close look at meal and entertainment claims, before an auditor does... The word on the street is that CRA's stance is that meals are only allowed on travel out of the area.
That is unless you are discussing business with a client or a supplier and have a record of why there was a business reason for the meal. Meals for promo purposes are being questioned.
Meeting with your staff for meals? Why? The result of losing the deduction on audit for a corporate employee is that the meal is added to your T4 as a taxable benefit. Can you afford to pay extra tax because you used company funds to buy your co-workers a meal?
You have to ask yourself, why am I buying lunch for the office staff? Is there a business reason? Does it meet the criteria for the number of 100% deductible meals for all staff as allowed by the Income Tax Act? And... why am I buying and giving tickets away to the game? To whom am I giving them, have I documented who got the tickets, and what's the business purpose for that gift of tickets to a game?
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