AGM Expenses

andersonmanage · Postby **andersonmanage** » Sun Mar 11, 2007 12:09 pm

Are AGM expenses tax deductible?

A colleague of mine once had a client who organised their AGM in Bermuda. As AGM expenses are tax deductible, the flights and hotels (not food) were allowable.

Would you the Revenue still allow this, of proof of proceedings minuted - even in a sunny location mainly used for holiday purposes?

Simon Sweetman · Postby **Simon Sweetman** » Mon Mar 12, 2007 1:38 am

This may rather depend : it would be different for a one man company ! I think part of the question is whether there are people who would be told they had to attend. If is is (say) you and the missus, then no.

andersonmanage · Postby **andersonmanage** » Mon Mar 12, 2007 1:48 am

Thanks for the prompt reply!

It is a small private company, with only one director, and an unrelated secretary. It would be both of these, not husband and wife, that would be travelling abroad for the AGM. If just husband as director and wife as secretary I would agree definitely no, but when there is an unrelated party? Or two directors not related and secretary?

Cynic · Postby **Cynic** » Mon Mar 12, 2007 5:45 am

How long are they going to remain "unrelated"?

andersonmanage · Postby **andersonmanage** » Mon Mar 12, 2007 5:51 am

Accountant and client. Hopefully totally unrelated forever!

Just wanting to arrange the AGM in sunnier climate thats all - rather than in the accountants office. Obviously we would pick up the tab for the accountants flights as well as our own.

Cynic · Postby **Cynic** » Mon Mar 12, 2007 12:32 pm

Wish I had some clients like you...

How long would you be away for? I take it you won't be flying out, have the AGM then flying straight back?

andersonmanage · Postby **andersonmanage** » Tue Mar 13, 2007 1:06 am

I would probably be out for a week, while the accountant/co sec would only be out for a day or two probably. The only costs would be the flights and the villa rental - all meals & drinks would obviously not be allowable.

My understanding was that if the directors & secretary were all in attendance and all shareholders were invited, it would be allowable - although being a small private company the only unrelated person would be the accountant -director & shareholder same/related.

Reasonable AGM expenses are allowable - I've just got to find out how reasonable they can be !!!

Thanks for your help.