1 The Core Principle

Canadian Tax Guide for Consultants · 3:24

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Lyrics

[Verse 1]
When you're running your consulting game
Every dollar spent needs a business aim
Three questions that the CRA will ask
Let me break it down, it's not a complex task

Was it earned to make your income grow?
Is the amount reasonable, not just for show?
Got the paperwork to back your claim?
These are the rules of the deduction game

[Chorus]
Reasonable purpose, earning income true
Documentation backing everything you do
Primary business reason is the key
Personal benefit's okay, just let it be
R-P-D, remember these three
Reasonable, Purpose, Documentation free

[Verse 2]
Coffee meeting with a client downtown
Hotel room when you're out of town
Even if you enjoyed that business meal
Primary purpose makes the deduction real

Don't worry if there's personal gain
As long as business purpose does remain
The taxman's looking for the main intent
Not every single benefit you went

[Chorus]
Reasonable purpose, earning income true
Documentation backing everything you do
Primary business reason is the key
Personal benefit's okay, just let it be
R-P-D, remember these three
Reasonable, Purpose, Documentation free

[Bridge]
Keep your receipts and records straight
Business purpose, don't hesitate
If it helps you earn another dime
You can claim it come filing time

The test is simple, crystal clear
Was it business? Keep it near
Reasonable amount for what you need
These three pillars help you succeed

[Chorus]
Reasonable purpose, earning income true
Documentation backing everything you do
Primary business reason is the key
Personal benefit's okay, just let it be
R-P-D, remember these three
Reasonable, Purpose, Documentation free

[Outro]
CRA's looking for the business thread
Keep these principles in your head
Deduct with confidence, stand your ground
When business purpose can be found

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