Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Whether the reimbursement or payment of membership, license and certificate fees by the employer would be taxable to the employee.
Position: Depends upon who is the primary beneficiary of the payment.
Reasons: In situations where an employee maintains a membership, license or certificate in a particular organization because of a legal requirement or because of a job requirement, such as a specification contained in a classification standard or in a job description, the payment or reimbursement of reasonable membership, license or certificate fees by the employer would not be considered to be a taxable benefit to the employee.
5-981502
XXXXXXXXXX Karen Power, CA
(613) 957-8953
Attention: XXXXXXXXXX
August 28, 1998
Dear Sirs:
Re: License or Certificate Renewal Fees Paid or Reimbursed by Employer
We are writing in reply to your letter of June 1, 1998 concerning the tax status of employer-paid or reimbursed license or certificate renewal fees for licenses or certificates that the employees are required to have in order to perform their employment duties.
Generally, pursuant to paragraph 6(1)(a) of the Income Tax Act (the “Act”), the value of benefits received in respect of, in the course of, or by virtue of an office or employment are included in income unless specifically excepted.
The determination of whether the payment or reimbursement of professional and other membership fees, licenses or certificate renewal fees by an employer in respect of an employee is a taxable benefit to the employee depends upon who is the primary beneficiary of the payment.
In our view, where an employee maintains a membership, license or certificate in a particular organization because of a legal requirement or because of a job requirement, such as a specification contained in a classification standard or in a job description, the payment or reimbursement of reasonable membership, license or certificate fees by the employer would not be considered to be a taxable benefit to the employee. It is our understanding that most memberships, licenses or certificates are portable, that is can be used with another employer.
We trust our comments will be of assistance to you.
Roberta Albert, CA
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
.../cont'd
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