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Level 1
June 3, 2020
Solved

Meal allowance or expense

  • June 3, 2020
  • 1 reply
  • 3 views

meal allowance 50%, but client generally consumes 50% or more - client has several subway and Domino pizza which he claims is for staff meetings and when staff works overtime.   Can client claim as eligible expense since he consumes 5% of expense or still stick with the 50% rule? 

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Best answer by skhawaja2

Hello Rose,

There are a few exceptions to the 50% limitation. I would recommend reviewing the interpretation bulletin here:

https://www.canada.ca/content/dam/cra-arc/formspubs/pub/it518r/it518r-e.pdf

and https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partners...

Hope that helps in getting you started

1 reply

skhawaja2Answer
Level 3
June 3, 2020

Hello Rose,

There are a few exceptions to the 50% limitation. I would recommend reviewing the interpretation bulletin here:

https://www.canada.ca/content/dam/cra-arc/formspubs/pub/it518r/it518r-e.pdf

and https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partners...

Hope that helps in getting you started