Canadian Businesses Seek To Restore Golf Tax Deductions

In many parts of the world, golf and business go hand in hand. After all, for four or five hours, one can make a sales pitch, hold an informal meeting or get to know a client better. And, with golf being the game that it is, learn a lot about each other's character along the way.

For years, in the US anyway, golf related business expenses are deductible from the the bottom line as an expense, which of course in turn lowers a company's tax exposure. But not in Canada.

Since 1971, Canadians have been barred from deducting greens fees for business-related golf outings. Canadian companies and businessmen can deduct hockey and other professional sports events, theater and concert tickets, and pricey meals at the country's finest restaurants, so long as they are business-related. But deducting a host of golf-related expenses—a staple of the tax code south of the border in the U.S.—is out of bounds.

The ruling Conservative party has agreed to take a new look at this law, and unlike the US, the opposition party isn't rejecting the idea as a knee-jerk matter of principle.

Peter Stoffer, a member of the left-leaning opposition New Democratic Party, agrees [with the Conservative Party]. He says golf is environmentally friendly; it's a game that's often used to help raise cash for charity; and it promotes a healthy lifestyle among Canada's youth.

Not to mention extra business is rarely a bad thing for golf course operators.