Are Golf Fees Tax Deductible in Canada? What CRA Says

If you play golf with clients and expect to write off your green fees as a business expense, you may be surprised. The CRA draws a firm line on golf-related deductions, and most golf expenses are not tax deductible in Canada — even if business meetings happen on the course.

This article explains the CRA rules on golf fees, what you may still be able to claim, and how to handle golf-related entertainment properly.

The Short Answer: Golf Fees Are Not Deductible

No, golf fees are not tax deductible in Canada. The Income Tax Act specifically prohibits deducting the cost of golf or golf club memberships as business expenses — even when the primary purpose is entertaining clients or conducting business.

This rule applies to:

• Green fees
• Golf club memberships
• Cart fees
• Golf equipment purchased for client entertainment
• Access to golf club facilities

What the Income Tax Act Says

Section 18(1)(l) of the Income Tax Act states that no deduction is allowed for expenses related to the use or maintenance of a golf course, a yacht, a lodge, or similar recreational property. This applies regardless of whether the expense has a business purpose.

The reasoning is that golf is considered a recreational activity by nature, and CRA excludes it from the category of ordinary and necessary business expenses.

Why Are Golf Fees Not Deductible?

The government’s position is straightforward: golf courses are primarily recreational venues. Even if a deal is signed on the 18th hole, the expense itself is viewed as personal or entertainment in nature. The Income Tax Act is explicit on this point to prevent abuse of entertainment deductions.

What About Business Meals at a Golf Club?

Here is where it gets more nuanced. If you purchase a meal at a golf club’s restaurant that is separate and distinct from the golf fees, that meal cost may qualify as a partially deductible entertainment expense.

CRA allows a 50% deduction on legitimate business meal and entertainment expenses. So if you dine with a client at the club restaurant (with no golf involved), and the receipt is separate from any golf fees, 50% of that meal may be deductible.

Key conditions:

• The meal must be separable from the golf activity
• There must be a clear business purpose and it must be documented
• Only 50% of the meal cost is deductible
• The golf portion remains non-deductible

What Entertainment Expenses Can You Claim in Canada?

While golf fees are off the table, other entertainment expenses may be deductible (at 50%) if they meet CRA requirements:

• Business meals at restaurants
• Tickets to sporting events (e.g., hockey, baseball) for clients
• Theatre or concert tickets used for client entertainment
• Holiday parties open to all employees (100% deductible)

Always keep receipts and note the business purpose and names of attendees for CRA documentation purposes.

Are Golf Fees Deductible for Employees?

No. Employees cannot claim golf fees as an employment expense on their T2200 (Declaration of Conditions of Employment), even if their employer requires them to golf with clients. The same prohibition applies.

What About Charity Golf Tournaments?

Charity golf tournaments are treated differently. If you pay an entry fee for a registered charity golf tournament, part of your payment may qualify as a charitable donation.

For example: If you pay $500 to enter a charity tournament and the fair market value of the golf and dinner is $150, the remaining $350 may be considered a charitable donation and eligible for a donation tax credit on your return.

Always ask the charity for an official donation receipt showing the eligible amount.

Other Sports and Recreation: Same Rules Apply

The prohibition extends beyond golf. Under Section 18(1)(l), similar exclusions apply to:

• Yacht club memberships
• Hunting and fishing lodges
• Ski club memberships
• Tennis club memberships

Need Help with Business Tax Deductions?

Understanding what is and is not deductible as a business expense in Canada can be tricky. Taxccount works with business owners, incorporated professionals, and self-employed Canadians to maximize legitimate deductions while staying fully compliant with CRA rules.

Book a free consultation with Taxccount today and make sure your business expenses are handled correctly.

Table of Summary

Here is the blog information in 6 easy rows for quick understanding:

Section	Easy Information
1. Topic	The blog explains whether golf fees are tax deductible in Canada for business purposes.
2. General Rule	Golf fees are not tax deductible — this includes green fees, club memberships, cart fees, golf equipment, or access to golf facilities.
3. Legal Basis	Section 18(1)(l) of the Income Tax Act prohibits deductions for recreational expenses like golf, yachts, lodges, or similar venues.
4. Business Meals Exception	Meals at a golf club restaurant separate from golf may be 50% deductible if there is a clear business purpose and documentation.
5. Other Deductions	Other entertainment expenses (50% deductible) include business meals at restaurants, sporting events, theatre/concert tickets; holiday parties (100%). Charity golf fees may partly qualify as a donation.
6. Employee/Other Rules	Employees cannot claim golf fees. The same rules apply to yacht clubs, ski clubs, hunting/fishing lodges, and tennis clubs.

Frequently Asked Questions

Can I deduct a golf membership as a business expense in Canada?

No. Golf club memberships are explicitly excluded from deductible business expenses under Section 18(1)(l) of the Income Tax Act, regardless of business use.

Can I deduct a client dinner at a golf club?

Possibly. If the meal is separately billed from the golf fees and has a clear business purpose, 50% of the meal cost may be deductible under CRA’s entertainment expense rules.

Are charity golf tournament fees deductible?

The portion of your entry fee that exceeds the fair market value of what you receive (e.g., dinner, prizes, golf) may qualify as a charitable donation and generate a donation tax credit.

What is Section 18(1)(l) of the Income Tax Act?

It is the provision in Canada’s Income Tax Act that specifically prohibits deductions for expenses related to golf courses, yachts, lodges, and similar recreational facilities — even for business purposes.

This is general information only and not professional advice. Consult a professional before acting.