Club Memberships and Dues
ITA s.18(1)(l) denies deductions for membership fees at any club whose main purpose is dining, recreation, or sporting activities, even when the use is entirely business.
Federal · Updated September 23, 2026
Definition
Income Tax Act section 18(1)(l) generally denies costs of using a yacht, camp, lodge, golf course or facility, and membership fees in clubs whose main purpose is dining, recreation or sport. Business networking does not by itself overcome the denial. The statute contains a limited exception for certain property used in the ordinary business of providing it for hire or reward. Current legislation
Key distinctions
| Expense | Ordinary treatment |
|---|---|
| Golf green fees, cart rental and golf-club dues | Not deductible under the restriction |
| Country, tennis or private dining club membership | Not deductible where the club's main purpose falls within the restriction |
| Genuine professional or trade-association dues | Potentially deductible if connected to earning income and otherwise eligible |
| Meal associated with a round of golf | Generally denied with the golf costs |
| Separately documented business meal at a golf club, with no golf or recreation involved | Can be considered under the normal meal rules, generally 50% |
CRA explains the separate-meal distinction in its archived recreational-properties bulletin, paragraph 4. Read that administrative explanation alongside the current statute; it does not make club membership fees deductible.
Example
A corporation pays $7,500 country-club dues, $1,200 green fees, $480 chamber-of-commerce dues and $640 professional dues relevant to the CEO's work. Assume the latter two costs otherwise qualify as business expenses.
The $8,700 golf and club amounts are non-deductible and must be added back if expensed in the accounts. The $1,120 business-association and professional amounts can be deducted under those assumptions. A separately billed client lunch with no golf requires its own purpose and meal-limit analysis.
Benefits and records
A denied corporate deduction does not eliminate a personal taxable benefit. A benefit received in the capacity of shareholder may fall under section 15; a benefit received as an employee follows employment-benefit rules. This is determined by the facts, not by choosing a T4 label. CRA taxable-benefit guide
Keep invoices separating membership, golf, room rental and food, and record who attended and what business was conducted. Relabelling club dues as marketing does not change their substance.
Related concepts
Sources
- Income Tax Act s.18(1)(l), s.6(1)(a), s.15(1)
- CRA archived Interpretation Bulletin IT-148R3, paragraph 4
See also
Keep the books behind these numbers current.
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