ENTERTAINMENT EXPENSE LOBBY
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ENTERTAINMENT EXPENSE LOBBY. golf as an allowable business expense. Presented by: Jeff Calderwood, CEO NGCOA Canada. Entertainment Expense Lobby. Now is the time to RIGHT THIS 42 year old WRONG !. Golf is not permitted as a client entertainment expense deduction

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Golf as an allowable business expense

ENTERTAINMENT EXPENSE LOBBY

golf as an allowable

business expense

Presented by: Jeff Calderwood, CEO

NGCOA Canada


Golf as an allowable business expense

Entertainment Expense Lobby

Now is the time to RIGHT THIS42 year old WRONG!

  • Golf is not permitted as a client entertainment expense deduction

  • All competing industries are allowed a 50% deduction

  • The Income Tax Act influences businesses to avoid golf

  • Golf is one of the best client entertainment options

  • Golf courses cannot sustain this unfairness any longer

  • We demand an equal 50% allowable business expense deduction

  • Once fixed, more corporate golf will be played


Golf as an allowable business expense

Entertainment Expense Lobby

2013 Federal Budget Update

  • 2013 Budget did not address business golf

  • Continued effort required

  • Did remove tariff on golf equipment


Golf as an allowable business expense

Entertainment Expense Lobby

Strategy

  • Persuade Finance MinisterFlaherty to amend the Tax Act

  • NAGA leadership on behalf of entire golf industry

  • Impact Public Affairs engaged to manage the lobby

  • Golf Awareness Days on Parliament Hill


Golf as an allowable business expense

Entertainment Expense Lobby

Strategy

  • Supporting media campaign

  • Meet with all MPs individually

  • Pre-budget consultations with Deptof Finance

  • Chamber of Commerce & CFIB support will now be engaged


Golf as an allowable business expense

Entertainment Expense Lobby

Key Messages

  • Golf is a vital industry, not just a great game

  • 6 million golfers; #1 participation sport

  • 70 million rounds played; 2500 golf courses

  • $11.3 billion direct economic impact ($37 billion indirect)

  • 155,000 direct employment (340,000 indirect)

    • 43% are students

  •  $3.1 billion in total property & income tax

  • Over $400 million in charity fund raising

  • Golf businesses are small businesses; 52% less than $1.5 million gross


Golf as an allowable business expense

Entertainment Expense Lobby

Key Messages

  • Golf deserves equal and fair treatment

  • Tax Act singles out golf at 0% deduction

  • All other recreation/entertainment/hospitality industries are 50% deductible

  • Examples: NHL, CFL, NBA, MLB, theatre, skiing, tennis, restaurants

  • Accountants advising businesses to use NHL, etc instead of golf due to tax disadvantage

  • Golf can’t compete fairly without level taxation playing field


Golf as an allowable business expense

Entertainment Expense Lobby

Key Messages

  • Income Tax Act is supposed to be built upon fairness

  • Golf is a better tool for building client business than any other

  • Not right that the Tax Act penalizes one small business sector

  • Golf courses have had declining corporate revenues

  • Not asking for a tax break for golf courses; deduction applies to the business paying for the client

  • IRS in the USA treats golf equally to all competing industries

  • Golf is not an elitist sport; avg 18 hole green fee is $35

  • Golf courses today far different than 1971 tax reform decision of 0% for golf


Golf as an allowable business expense

Entertainment Expense Lobby

Our ‘ASK’

  • Amend section 18.1 of Income Tax Act to include golf at 50%

  • Golf will then be treated fairly with all competing industries

  • Applies to guest fees and cart rental only

  • Does not apply to memberships

  • Incremental golf will be played by the corporate sector

  • Employment, taxation and overall growth in golf industry will be stimulated


Golf as an allowable business expense

Entertainment Expense Lobby

Potential Objections

  • Why not eliminate tax deductions for all businesses?

  • Yes, that would correct the unfairness, but not realistic

  • Entertaining clients is a critical cost of developing business

  • Would discourage anyone from opening a business in Canada

  • We’d lose most NHL teams & many other entertainment industries

  • Flaherty on record saying he wouldn’t do so

  • Just a ‘red herring’…return to the real discussion of the need for 50%

  • All growth in golf industry will be stimulated


Golf as an allowable business expense

Entertainment Expense Lobby

Potential Objections

  • Won’t it cost Gov’t too much when we’re trying to balance budget?

  • Projected net lost tax revenue is $20 million

  • To Flaherty’s $260 billion budget, it is insignificant, basically revenue neutral

  • Incremental golf played will drive additional tax revenues

  • To the golf industry, the incremental gross revenues will be a huge impact


Golf as an allowable business expense

Entertainment Expense Lobby

Your Role

  • Meet with your own MP

  • State the case for golf deserving fair tax treatment

  • Tell the MP that we are meetingwith all 308 MPs across Canada

  • Use your own business as a local example within that riding


Golf as an allowable business expense

Entertainment Expense Lobby

Your Role

  • Request a letter of support from MP to Flaherty

  • Request that the MP follow up with a conversation with Flaherty

  • Request ongoing support from the MP

  • Report meeting outcome back to Impact Public Affairs


Golf as an allowable business expense

Entertainment Expense Lobby

Supporting Material

  • Download your Grass Roots Advocacy Kit at

  • www.ngcoa.ca or www.canadagolfs.ca

  • Consult with Jeff Calderwood or other NAGA directors or Impact Public Affairs


Golf as an allowable business expense

Thank You

All the best for the 2013 season!

Jeff Calderwood, CEO

NGCOA Canada

613-226-3616

[email protected]


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