Tax deductible expenses – ABBA style
In most tax jurisdictions, a business can deduct expenses which are solely for the business. For example, employee wages are deducted to arrive at taxable profits. But some expenses are not allowable against taxes, for example entertainment.
The words “wholly and exclusively for the purposes of the business” are often used to describe the expenses that are allowable. A recent article in The Guardian has a great example – the costumes worn by ABBA. Apparently Swedish law determined that any stage costumes could not be worn on the street. Can’t image myself in an ABBA costume walking down the street, so I think this would be a whole and exclusive business expense without much doubt.
You can read the full Guardian article here