Prior to 1988, Canadas tax authorities permitted business meals and entertainment expenses to be fully deducted in calculating taxable income.
Question:
Prior to 1988, Canada’s tax authorities permitted business meals and entertainment expenses to be fully deducted in calculating taxable income. Since then, the allowed deduction has been reduced to 50 percent of the expense. This affects those who incur such expenses as part of normal business activity. Evaluate this change in tax policy using the alternative criteria for horizontal equity.
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Related Book For
Public Finance In Canada
ISBN: 9781259030772
5th Canadian Edition
Authors: Harvey S. Rosen, Ted Gayer, Jean-Francois Wen, Tracy Snoddon
Question Details
Chapter #
16
Section: EXERCISE
Problem: 3
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Question Posted: December 08, 2022 01:04:52