Q:
For government servants who apply for early retirement, do they need to declare the gratuities received?
A:
Yes, all gratuities received are taxable and have to be declared. However, there are certain exemptions given to certain gratuities, depending on whether the conditions are fulfilled.
Q:
If Andy uses the government subsidy/allowance to repay the company's expenses, are the expenses tax deductible?
A:
No, expenses paid using the grant or subsidy from the government is not 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!
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