Whether expense for renting an office/suite in other cities in lieu of travelling expenses and hotel costs for sale representatives would be deductible. Expenses would be accommodation/office costs, including parking, meals, etc.
Rent and parking expenses would be deductible to the extent they are reasonable and relate exclusively to the business. Furniture purchased to furnish the office/suite is a capital expenditure on which capital cost allowance may be claimed. Meals would be deductible as provided for by section 67.1, provided they are for business purposes.
On the basis of Ozvegy v. MNR, 78 DTC 1772, there would be no difference between paying an hotel accommodation and rent for an apartment used for business purposes. With respect to parking and meals, the expense is deductible if it is incurred to earn income - paragraph 18(1)(a) of the Act. Additional restrictions apply to meals under section 67.1. Finally, the cost of the furniture is a capital expenditure and cannot be deducted by virtue of paragraph 18(1)(b) of the Act. However, capital cost allowance may be claimed under paragraph 20(1)(a) of the Act.