The deduction for meals and entertainment expenses for commissioned employees is limited to 25%

When commissioned employees take a client out to eat in their home city, they are only allowed to deduct 25% of the restaurant bill.

The deduction for commissioned employees taking clients to a restaurant within their employer's metropolitan area is limited to 25% of the bill due to the combined operation of s. 8(4) and s. 67.1(1).

This means that the employee's portion is completely denied under s. 8(4), while the client's portion is denied by 50% under s. 67.1(1).

However, the Quebec equivalent of s. 8(4) includes an exception when the commissioned employee has a meal with a client.

The Canada Revenue Agency (CRA) confirmed this interpretation and indicated that the Department of Finance would be made aware of the issue at the request of the Association de planification fiscale et financière (APFF).

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