Our Ask
A 50% Deduction for Eligible Golf Expenses
NGCOA Canada is calling on the Government of Canada to amend paragraph 18(1)(l)(i) of the Income Tax Act to allow businesses to claim the existing 50% business entertainment expense deduction for eligible golf-related expenses — specifically green fees and cart rentals.
This would not create special treatment for golf. It would provide more consistent tax treatment for golf alongside other legitimate business-entertainment activities.
The Current Tax Treatment
Golf Is Specifically Excluded
Businesses can generally deduct 50% of qualifying client-entertainment expenses for activities such as squash, pickleball, tennis, skiing, concerts and sporting events.
Golf is treated differently. Paragraph 18(1)(l)(i) of the Income Tax Act specifically excludes expenses incurred for the use or maintenance of a golf course. This means businesses cannot claim the same deduction for eligible green fees and cart rentals.
This legislation dates back more than 50 years and does not reflect the role golf facilities play today in hosting client meetings, networking events, supplier discussions and other legitimate business-development activities.