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2016-02-15 23:06:20

Most Outrageous Attempts at Tax Deductions

Most Outrageous claims for tax deductions

When it comes to taxes…. We all try to minimize what we pay. We do this using allowable tax deductions from the CRA. While the list of income inclusions is very long, the list deductions, is not. With Business income there is a little more room for expenses; limited by your actual Business Income. This is where creative accountants try and push the envelope and see what they can get away with. This is how the CRA rules can and do change so why not try? Below we have made a list of some of the most outrageous tax claims, including whether or not the CRA accepted them. ;)

Accepted:

Additional food required by Couriers

The Federal Court of Appeal ruled the additional food required by a foot and transit courier because of the extra energy he expended could be claimed as a business expense.

Diamonds can be a girl’s best friend

A stripper was allowed to keep nearly $2 million in gifts from a very happy customer despite the fact that the CRA argued the gifts were income. The Tax Court ruled that they were indeed gifts. I wonder what she expenses?

Golf is not an employment expense (if you hate it)

A Canadian executive successfully argued that the golf membership paid by his company was not a valid employment expense because he hated playing golf – the only way Golf memberships or dues are allowed by the CRA as an expense is if the membership is for the sole purpose of the Employer (earning income) which in this case, it was.

Not Accepted:

Trips to Vegas

Even if your doctor recommends trips to warmer climates to help with a skin condition, the cost of trips to Las Vegas and Arizona cannot be claimed as a medical expense.

Ballet lessons

While the cost of your child’s ballet lessons does qualify for the Children’s Arts Credit, it cannot be claimed as a childcare expense.

Haircuts

Even if your job requires you to be well-groomed and get a haircut regularly, the cost of the cuts is not deductible against your employment income.

Myself, I am still trying to claim pantyhose as a business expense  :)