Deducting the costs of the reception on your brother’s wedding day might not be a good idea

A business owner was subject to a tax audit regarding his business operations, specifically concerning the expenses he had deducted from his profits. Following the audit,administration issued him a tax assessment.

The company contested the deduction of rent, restaurant expenses, travel expenses, and also entertainment expenses for a party held on July 12, 2014.

Regarding these expenses, the contractor defended himself by stating that they were intended to organize an event to“celebrate the fifteenth anniversary of his business in the presence of employees and clients.”

The Court will note, however,that“by merely submitting a guest list he had compiled for the tax assessment proceedings, [the contractor] has provided no evidence to show that the reception—which took place on the same date as [the contractor’s] brother’s wedding—was organized for business purposes.”

The tax assessment is therefore confirmed, as is the imposition of penalties.

CAA Douai, June 19, 2025, No. 23DA01613

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