Income Tax Severed Letters

Principal Issues: Whether the words “professional status recognized by statute” (or “un statut professionnel reconnu par la loi” in French) found in subparagraph 8(1)(i)(i) of the Income Tax Act includes recognition in the regulations made under legislation for purposes of the professional dues deduction.

Position: Notwithstanding our previous position in 2014-0530691E5, the words “professional status recognized by statute” found in subparagraph 8(1)(i)(i) of the Income Tax Act includes recognition in the supporting regulations.

Reasons: Legislative schemes depend on regulations to make them work and regulations must strictly conform to the limits established by the Act that authorizes the regulation. Therefore, even if the word statute is interpreted only in the narrower sense to include Acts that are passed by a legislative body, applying a textual, contextual and purposive analysis, a professional status can be recognized by a statute even if it is only recognized in the supporting regulations of an Act.