Can You Claim the Drinks with Classmates During Bon Vacation as Expenses?

【Koshida Accounting Firm Column Date:

Hi, my name is Taisei Koshida, and I am a certified public accountant and tax accountant.

 

I aim to assist non-Japanese business owners who need help with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.

 

If you are unclear about what expenses will be allowed, you might find this blog helpful.

 

 

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Bon vacation has ended. I assume many people went out for drinks with old classmates. Can you consider this expense as business-related?

 

Were There Any Business Promotions?

The key is whether there were any business promotions during the gathering. For instance, if you promoted a new service to old classmates, it’s more likely to be considered a business expense.

 

Past Outcomes

If in the past, you secured contracts due to promotions during such gatherings with classmates, it increases the likelihood of it being considered a business expense.

 

If A Tax Audit Is Conducted

Tax auditors might argue that it has no business relevance because the receipt is dated during the Bon vacation period. You should assert that there were sales promotions and past results. Without them, it’s more likely the expense will be disallowed.

 

 

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