• Last Updated:
  • Jun 30th, 2019 10:46 am
Sr. Member
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Mar 3, 2013
516 posts
East Gwillimbury

Giftcards for referrals

Hi, I would like to start offering gift cards for referrals. I have been installing a lot of Tesla car chargers lately and I think it would be a nice gesture and good for business to offer this referral incentive. I am just a bit confused about the write off. Is a gift card sent out as a referral reward a 100% write off and under what category would this be under? Would it be considered advertising?
A Licensed Electrical Contractor
1 reply
Deal Fanatic
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Oct 19, 2008
6478 posts
As meals & entertainment its only 50% deduction, list under advertising and it is 100%. Keep perfect records of which clients the gift cards are given to as there are a lot of people abusing this....RE agents claiming they gave client a $500 gift card and spending it themselves etc. There is a lot of fraud going on with gift cards so keeping good records would prevent you from getting caught up when CRA clamps down on this.

I wonder how CRA views self employed trades giving out/writing off gift certs for their own services. Might not be as well received by clients as a $250 Keg gift card but $250/2 hour service call costs you less & fills down time.