Tickets

According to the Income Tax Act, fines and penalties are not deductible for tax purposes. 

This applies to tickets imposed by: 

• Federal government 
• Provincial government 
• Municipal government 
• A government agency 
• Regulatory authority 
• Court 
• Tribunal 
• Or even a foreign country 

This also applies if you receive a traffic ticket from the police department. It is a government agency and you cannot deduct it as a business expense. If you receive a parking ticket from the city, which is a local government, you cannot deduct it, either. 

Tax tip of note! If you find yourself in a rush for a business meeting and you have to park somewhere, you may want to park on a private parking lot instead of the city’s property. If you do receive a parking ticket from the private parking lot owner, it is in fact deductible for tax purposes.