14 November 2002 External T.I. 2002-0164515 - PROFESSIONAL MEMBERSHIP

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 CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues: XXXXXXXXXX

Position: General Comments Provided.

Reasons: General Comments Provided.

		2002-016451
XXXXXXXXXX 	Karen Power, CA
(613) 957-8953
November 14, 2002

Dear XXXXXXXXXX:

Re: Income Tax Receipts

This is in reply to your facsimile of September 13, 2002, wherein you have requested that we XXXXXXXXXX.

Our comments

Interpretation Bulletin IT-131R2 explains the deduction provided under subsection 20(10) of the Income Tax Act ("the Act") in respect of convention expenses. Paragraph 1 of IT-131R2 defines a convention as a formal meeting of members for business or professional purposes. The first sentence of paragraph 1 states that the deduction for convention expenses is allowed to self-employed taxpayers who are carrying on a business or practicing a profession and, if such is the case, the amount is deductible in computing income for a taxation year from a business, subject to certain limits explained in the bulletin.

It should be noted, however, that paragraph 7 of IT-131R2 makes it clear that "employees are not in any case entitled to deduct any of the costs of attending conventions in computing their income." Subsection 8(2) of the Act provides that an employee is only entitled to deduct expenses that are described in section 8. There is no provision in section 8 of the Act that would provide an employee with a deduction for convention expenses. For the same reasons, employees are generally not entitled to deduct training expenses (see paragraph 8 of IT-357R2 for a discussion on this issue).

XXXXXXXXXX the deductibility for income tax purposes of expenses depends upon each taxpayer's particular set of circumstances and can be determined only after all relevant facts are determined.

XXXXXXXXXX Interpretations Bulletins are available on the Canada Customs and Revenue Agency website at www.ccra-adrc.gc.ca/tax/technical/incometax/menu-e.html. Specific bulletins of interest may include the following:

Interpretation Bulletin IT-103 - Dues Paid to a Union or to a Parity or Advisory Committee
Interpretation Bulletin IT-131R2 - Convention Expenses
Interpretation Bulletin IT-158R2 - Employees' professional membership dues
Interpretation Bulletin IT-211R - Membership Dues - Associations and Societies
Interpretation Bulletin IT-357R2 - Expenses of Training
Interpretation Bulletin IT-518R - Food, Beverages and Entertainment Expenses

We trust that our comments are of assistance to you.

Yours truly,

Milled Azzi, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch

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