Topic: Interesting to know how many will read but not respond positively or at all to this?

Have you ever written the cost of a cruise off as a tax deductible expense? Legitimate or otherwise???

My accountant did in 1992. We went on a Carribean cruise on the Cunard Countess. I was out of work at the time having just finished a contract. He asked me if I was looking for work whilst on the cruise. I said no at first, he scowled and said I'll ask you again so I replied well yes I suppose I was, as I was always looking for new opportunities. He claimed the whole fare as legitimate expenses, which was accepted by the tax office. I went overseas soon afterwards so it never came up again.

No we've not claimed tax relief on a cruise. The company pays for the directors and non-executive Chairman and their partners to spend a team-building weekend away annually, but I can't persuade them that they's like to cruise!

That reminds me of the story of the Farmer that used to claim Sheep Dip as expenses on his tax returns, & was successful for many years in getting it written off as a non taxable expense, That is until he had a change of tax inspector who was young & keen to prove himself decided to investigate his claim thoroughly! & found out that the Sheep Dip that the Farmer had been claiming for over the years!! was in fact Whisky that was called Sheep Dip.

Is it not called tax evasion?CG

QUOTE:

Is it not called tax evasion?CG

No its called Tax Avoidance! which is legal whereas Tax Evasion is Illegal.

Avoidance , evasion still seems the same to me, CG

I went on a cruise many years ago paid for by the company I worked for, which was a Sales Leader's Conference. We had at least one business session every day. Those of us that took wives/partners had a tax bill from IR based on the value of the cruise for the wife/partner.

Nice way to work though

In Answer to the question No, and in answer to the Difference between Tax Evasion and Tax Avoidance.

TAX AVOIDANCE AND TAX EVASION

It is necessary to differentiate between tax evasion and tax avoidance.

Tax evasion:

The reduction of tax liabilities by not informing the Revenue of all relevant facts. Tax evasion is illegal and criminal penalties apply, hence, if caught evading tax the director/s of the company will be fined and even imprisoned.

Tax avoidance:

The reduction of tax liabilities within the framework of the law. Tax avoidance may not always succeed, but is legal; tax evasion is never legal.

The difference between tax avoidance and tax evasion is often the thickness of a prison

Ok Delboy, but how to accept the first posters explanation of his accountant's suggestion that he claim for his cruise when clearly this wasn't the case. No sorry, it's a cop out, there are lot's of things the ordinary taxpayer can't claim for' maybe we should all have accountant's who are so obliging