Expense Cell Phone Ticket

Are fine, penalties and interest tax deductible?

Can I expense my client's $167 using electronic device while driving ticket?

In Part 1 of my article on Limitations and Non-Deductible Expenses I explain that:

"Since March 22, 2004, most fines and penalties imposed under the law of Canada or a province or a foreign country are no longer tax deductible. In B.C. this includes penalties from WorkSafe BC as WCB is considered a public body under ITA section 67.6."

Comments for Expense Cell Phone Ticket

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Jan 26, 2012

Penalties, Fines and Interest
by: Tracy, Ontario

Hi, Are penalties, fines and interest for late GST, income tax and payroll remittances deductible? What would be the journal entry be for these? Thanks. Great site!

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Hi Tracy,

Click on the link in the above post for your answer ... and go to item # 5 under "13 Non-Deductible Items You Should Know About"

It explains how to record the expense for business vs. tax.

P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.

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