Quote:
Originally Posted by Fire
I think there is a entertainment tax refund businesses can use to get back some of the costs.
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Not really.
Businesses get taxed on income (revenues minus business expenses), basically at 25%. But, for some expenses like meals and entertainment, such as Flames tickets, food, etc, only 50% of the expense can be subtracted to get to your income figure. You'll hear people say companies get a 50% writeoff, but it isn't as good as it sounds.
For example, if your revenues are $50,000, and your only expense is $20,000 in your food and tickets at a Flames game, your the income you'd get taxed on is actually $45,000, so you'd pay $10,000 in taxes.
If instead you spent that $20,000 on office supplies, or your employees' salaries or whatever, the full amount could be deducted, and you'd only pay $7,500 in taxes.