Quote:
Originally Posted by iggy_oi
At that point isn’t it essentially profiting twice?
If they fail to drum up the extra business or decide to shut down operations the following year they essentially get a write off for zero benefit to the taxpayers.
I’m not saying businesses shouldn’t have the ability to write off any of these types of expenses but I think your view of it as an absolute necessity is rype for abuses.
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How does a company
profit from the direct activity of buying tickets or entertainment for prospective clients? It's a business expense just like advertising is. It takes expenses to attract new business, this is simply one of the forms of expenses incurred to achieve such and like most/all other expenses a business incurs is netted against revenue to calculate taxable income.