Taxes Consolidation Act 1997 section 840

Business entertainment

Section 840 provides that business entertainment expenses are not deductible for income tax or corporation tax purposes, and that capital allowances are not available for assets used in providing business entertainment.

• Business entertainment covers all forms of hospitality — including accommodation, food, drink and gifts — provided directly or indirectly in connection with a trade, business, profession or employment, but excludes entertainment provided solely for bona fide staff members.
• No deduction is allowed for business entertainment expenses in computing trading profits, investment company management expenses or employee expense claims, and no capital allowances are available for assets used for business entertainment.
• The disallowance extends to sums paid to, on behalf of, or placed at the disposal of staff members for the purpose of defraying business entertainment expenses.
• Where a service provider's fees include a business entertainment element, only that element is disallowed; the amount is determined by the inspector, subject to appeal to the Appeal Commissioners or a Circuit Court judge.