Only 70 per cent of the costs incurred by a film production company for meals and drinks distributed free of charge to the persons employed at the film location for the production of the recordings can be deducted as business expenses, provided that the meals and drinks are also distributed to those persons who are not employees of the company itself, but who, for example, participate in the production of the set as employees of the participating television stations. Continue reading
Tax & Legal
The Supreme Tax Court has allowed a brewery a deduction for financing a golf tournament series under its contract to supply beverages to the participating clubs, but disallowed similar costs of an insurance agency incurred in the course of sponsoring a charitable promotion. Continue reading
The Supreme Tax Court has held that an employee moving to take up a new job may deduct the additional rental cost incurred in maintaining two homes for a temporary period as a business expense.