Business expense Golf Classic Outing for chaity

[Will Gilberson]

I am supporting a charity by going on a Golf Classic. Cost us €500. Can my limited company claim this as a legitimate business expense

 

[T McGibney]

Not enough information here to answer properly.

Assume you can't. The 12.5% CT deduction is worth €60. Not worth annoying Revenue over a pittance like this.

 

[Bronte]

There was a newspaper article this month about how revenue are now targetting such business expenses. Something about xmas parties being ok, but not other 'events'. I thought it pretty petty as social events paid for by the company help with networking and staff cohesion.

 

[T McGibney]

There was a newspaper article this month about how revenue are now targetting such business expenses. Something about xmas parties being ok, but not other 'events'. I thought it pretty petty as social events paid for by the company help with networking and staff cohesion.

They absolutely love being petty over stuff like this.

 

[ClubMan]

Hardly petty to clamp down on private company junkets being subsidised by the public purse in my opinion.

 

[Luternau]

Hardly petty to clamp down on private company junkets being subsidised by the public purse in my opinion.

It's easy to be charitable with other peoples (tax payers) money. Some people excel at it but would never give their own money to charity.

 

[T McGibney]

Hardly petty to clamp down on private company junkets being subsidised by the public purse in my opinion.

"Junkets"
"Subsidised"
"Hardly petty to clamp down on" a €60 corporation tax saving

 

[Luternau]

"Junkets"
"Subsidised"
"Hardly petty to clamp down on" a €60 corporation tax saving

In this case its €60...but what about the bigger picture for Revenue, and where does it stop or end if there is no likelihood of them questioning a 'juncket' type expense?

 

[T McGibney]

In this case its €60...but what about the bigger picture for Revenue, and where does it stop or end of there is no likelihood of them questioning a 'juncket' type expense?

The concept of materiality normally comes into play. It's one of those buzzwords consultants use when they refer to what the rest of us term common sense.

 

[Luternau]

The concept of materiality normally comes into play. It's one of those buzzwords consultants use when they refer to what the rest of us term common sense.

You mean like the concept and meaning of 'derivatives' makes/made common sense in the finical terms

Experts using buzz words, does not imply or infer common sense.

 

[T McGibney]

You mean like the concept and meaning of 'derivatives' makes/made common sense in the finical terms

Experts using buzz words, does not imply or infer common sense.

That's not what I meant.

 

[Brendan Burgess]

Assume you can't. The 12.5% CT deduction is worth €60. Not worth annoying Revenue over a pittance like this.

Just to get back on track. This is the key point.

Avoiding/evading a small amount of tax is just not a good idea.

With Corporation Tax so low in Ireland, claiming stuff like this is not a good idea.

Brendan

 

[Robzig]

Is the only tax in question here the corporation tax?

 

[T McGibney]

Avoiding/evading a small amount of tax is just not a good idea.

Just to clarify, I wouldn't class this as avoidance or evasion. It's clearly a bona fide expense. But as I said earlier, Revenue can be very awkward over issues like this. In the past 18 months, I've seen them whinging over €6 VAT incorrectly reclaimed by a company on some deli food it bought for staff during the Covid panic in lieu of a Christmas lunch.

 

[Gordon Gekko]

Tommy’s right, you need to be careful. It’s not true to say that it’s people playing fast and loose with taxpayers’ money, that’s just silly. 87.5% of it is the business’s money, 12.5% of it is taxpayers’ money.

Take a charity event. If it’s sponsorship and the business can stick up an ad, I’d claim a deduction. If it’s a golf classic, and a customer is invited, I wouldn’t claim a deduction as it’s entertainment. I’d always claim staff entertainment and at multiple times of the year. That’s crucial for morale and integration, and therefore a legitimate business expense. I’d go in front of an Appeal Commissioner myself if ever challenged by Revenue.

 

[Fortune]

They absolutely love being petty over stuff like this.

I've heard that they're going after anything they don't get themselves. Like there's no Revenue Xmas party, so they're not allowing that as a deduction.

 

[Gordon Gekko]

I've heard that they're going after anything they don't get themselves.

Watch out ‘logic’ and ‘reason’ on that basis!

 

[Will Gilberson]

OK, understand the 12.5 % does not amount to much. But what does matter is the business paying the €500 expense, rather than me having to pay for it personally. If business pays, that's €500 less I have to pay personally, or would revenue then come after me for BIK

 

[T McGibney]

OK, understand the 12.5 % does not amount to much. But what does matter is the business paying the €500 expense, rather than me having to pay for it personally. If business pays, that's €500 less I have to pay personally, or would revenue then come after me for BIK

I think you should be okay on that front.

 

[Gordon Gekko]

OK, understand the 12.5 % does not amount to much. But what does matter is the business paying the €500 expense, rather than me having to pay for it personally. If business pays, that's €500 less I have to pay personally, or would revenue then come after me for BIK

No, it’s still a win for you. Take you and your company in aggregate.

Assume you don’t claim the deduction. There’s €63 of corporation tax. Versus paying yourself north of €1,000 to get yourself the €500 to pay for it personally where circa €500 of tax walks out the door to the Collector General.