MLC301 Principles Of Income Tax Law - Assessment Questions

QUESTION 4.6

The taxpayer incurs a cost of $1500 for an airline ticket to Hong Kong to investigate the prospects of exporting the company’s produce into the Chinese market. While in Hong Kong the taxpayer spends seven days meeting with trade and industry representatives, and five days on an organized bus tour of the local sites. Is any part of the $1500 airfare deductible, and if so, how could the deductible proportion be determined?