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Q: A director had lunch with a staff, but the staff has family relationship with the director, is the lunch eligible to claim 100% tax deduction as staff entertainment?
A: It may be viewed as a private expenditure because they have family relationship. However, if it can be proven that the lunch involves other staff as well who are not related to the director, then the staff lunch is eligible to claim 100% tax deduction as staff entertainment.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru