Principal Issues: Whether a per-diem/expense allowance paid by a union to its executive members is taxable.
Position: Executive members of a union who receive a general per-diem/expense allowance are employees of the union and in receipt of taxable amount
Reasons: Subsection 5(1) of the Act includes in income salary, wages and other remuneration received in respect of an office or employment. An office is defined in subsection 248(1) of the Act to include any position that entitles an individual to a fixed or ascertainable stipend or remuneration. It also includes positions where the incumbent is elected by popular vote or appointed in a representative capacity. Further, a person holding such an office is considered an officer and an employee. If an amount is not generally included in employment income under subsection 5(1) of the Act, other specific provisions could apply: paragraph 6(1)(c) director's or other fees, or paragraph 6(1)(b) allowances received in respect of personal, living, or other expenses. As a result, the general per-diem/expense allowance described by the correspondent is taxable.