Subcontractors outside of North America

If a taxpayer has an online business and has subcontracted work to people outside of North America does that impact the ability to expense these costs on their Canadian business tax return?

No. Any legitimate costs incurred in running a business are deductible for tax purposes.

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Thank you Sir

You really need to watch out. There are certain expenses etc. like advertisement, which are restricted and may not even be eligible for deductions in Canada if done with a foreign advertisement firm outside of Canada.

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Are you suggesting that advertising with Google, Facebook and KIJIJI would not be legitimate?

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Those are multinational corporations with huge subsidiaries in Canada. However, if a corp’s advertisement pitch designed for an audience other than Canadians and is done beyond the physical borders of Canada then limitations will apply depending on nature of business.

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