Gary carries on an accounting business as a sole proprietor. The business is an HST registrant. In the current year he incurred the following expenses, among others:
• $12,312—Lease payment for his car (12 months). . Eighty percent of the kilometres driven were for business purposes.
• $1,000—Donation to a registered charity.
• $5,000—Entertaining clients (meals and theatre tickets).
• $2,400—Golf club annual dues. Many of Gary’s clients are members of the golf club.
Comment on the deductibility of these four expenses (and the HST implications). Income tax reference: ITA 18(1), 67.1, 67.3.