[Senator Clay Davis]

Generally speaking Revenue Canada wants meals to be claimed only if they actually relate to dealings that will result in future business (i.e. more revenue for the government to tax), so things like an appreciation dinner don't (or shouldn't) count because they are more of a thank you for your business rather than something to actually increase business. Now if you can prove such a dinner resulted in more business (i.e. a new contract) then it becomes deductible at the 50% rate.