Carmela Pirillo CPA

In Canada, meals are generally not fully tax-deductible expenses. The Canada Revenue Agency (CRA) allows businesses to claim a portion of meal expenses incurred for legitimate business purposes as a tax deduction. However, there are specific rules and limitations.

• 50% Deductibility
• In most cases, businesses can deduct only 50% of the cost of meals as a business expense. This includes meals while traveling for business purposes, entertaining clients, or meals provided to employees.
• Eligible Business Purposes
• To be deductible, meals must be incurred in the course of earning income from a business. This includes meals during business meetings, conferences, or when traveling away from the usual workplace.

A common question I'm asked is whether a Tim Horton's coffee or bagel is a tax deductible expense. Many Amazon sellers drive to various locations for supplies or to pick up inventory. Stopping for a quick bite or coffee is a treat but it is NOT a tax deductible expense.
There may be specific exceptions and special rules for certain industries or situations, so it's advisable to consult with a tax professional.