A financial planner takes out a prospective new client to lunch. Is the financial planner allowed to claim the costs of the lunch (for both himself and his client) under section 8-1?

Question

Quizplus · Accepted Answer

The costs of the lunch would be considered an entertainment expense, and under most tax jurisdictions, entertainment expenses are not deductible for tax purposes. This is because they are not directly related to the earning of assessable income.

A Financial Planner Takes Out a Prospective New Client to Lunch