#1Feb 6th, 2012
Want golf fees allowable business expense in federal budget
Golf groups in P.E.I. and across the country are calling on the federal government to recognize green fees as a business expense, just like other business entertainment.
"We're really just asking for a fair level playing field to compete with everyone else," said Jeff Calderwood, of the National Allied Golf Associations.
As it stands, when business owners entertain their clients, they can write off several other entertainment expenses, such as season tickets, restaurant bills, and party room rentals.
But golf is not currently included on the list of allowable business expenses.
"You have business people intentionally going to NHL games, skiing, anything you can name and avoiding golf because now, in a tighter economy, they have to watch their bottom line and want appropriate allowable deduction for the cost of doing business, such as entertaining clients," said Calderwood.
Golf advocates argue they're being treated unfairly and are looking to this spring's federal budget to change that.
The industry wants to see a 50 per cent tax deduction for green fees and golf cart rentals, which could cost up to $20 million.
An NDP MP from British Columbia is putting forward a private member's bill supporting the golf deduction idea.
The P.E.I. Golf Association agrees with the lobby effort.
"The industry needs some stimulus to capture lost business…help the convention business," said executive director Ron MacNeil.
Normally, golf is a $100-million industry that employs about 500 people on the island, said MacNeil.
But the past few years have been difficult, with business down an estimated 25 per cent, he said.
Could backfire
Still, one tax law expert believes the proposal could backfire on the golf industry — and the entertainment industry as a whole.
"A policy maker, or member of the public might say, 'Why don't we level the playing field by reducing deductibility for all those types of expenses where we know there's a big element of personal enjoyment?'
"And it really feeds a sense of unfairness among taxpayers who don't get to have tax deductible recreation pursuits," said Lisa Philipps, a tax law professor at York University’s Osgoode Hall in Toronto.
Wayne Easter, the Liberal MP for Malpeque, and Gail Shea, the National Revenue Minister and Conservative MP for Egmont, said they don't support the proposal.
The Island's other two Liberal MPs did not reply to requests for comment.
Golf industry pushes for tax deductions - Prince Edward Island - CBC News
