It would be huge for the golf industry if the federal government allowed it to become a legitimate business expense once again. There’s really no reason for golf being any different than any other entertainment-related business expense.
I’ve wondered why tax-deductible status was ever taken away. I’d love to know what the answer is and what the reasoning was behind it.
If I say I’m going to take a client to a hockey game and buy dinner, I can write that off, but I can’t if I want to take that client golfing. All of the stars align at a golf course for a business outing, yet businesses can’t write it off.
We’ve all heard about golf being perceived as a rich man’s sport, and I think we’ve been painted with a bad brush on that one, but the reality is that it’s not the cheapest thing to do and it’s not getting any less expensive.
However, the last tickets I had to a hockey game had a face value of $250. If you’re taking several clients and buy them dinner, that becomes very expensive too.
With tax-deductible status, people are more liable to bring out three guests and buy them dinner. For us, it would have a huge impact on our guest fee revenue and definitely, we would see a positive effect on food and beverage.
People used to buy corporate memberships with which to entertain clients, but the appeal isn’t as great with the rules as they currently stand.
I think everyone in the industry should get on board and lobby for this change with everyone writing a letter or making a call to their MPs. The major golf associations are aligning themselves to give it a good run and they deserve our support.
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