Tax questions? You ask lah! #68

Published: Wed, 03/30/22

Tax questions? You ask lah!

Your weekly dose of tax knowledge - become tax savvy in just 2 minutes!

A company is selling a membership plan and a free gift without business logo will be given for new member. Is the free gift eligible for tax deduction?

A:
As the free gift given out is related wholly to sales, it is eligible for 100% tax deduction as per the Proviso (vii) to Paragraph 39(1)(l) of the Income Tax Act 1967.

If motor vehicles were registered under the name of director, but held in trust on behalf of the company, are the insurance and road tax payments made by the company eligible for tax deduction?

A:
If the trust deed for the holding of motor vehicles in trust has been duly prepared, the motor vehicles are effectively belonging to the company, hence the related motor vehicle expenses will be tax deductible.

Wishing you plentiful tax savings!

Zen Chow

YYC Tax Guru

P.S. I've received a lot of tax questions, so now I am answering the frequently asked questions and sharing them with you weekly!

P.P.S. Do you want more tax saving tips? Because this is just the tip of the iceberg. Join my FREE tax livestream @ https://bit.ly/zen-taxlive

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