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.
Principal Issues: Are expenses to achieve and maintain ISO9000 registration deductible in computing business income.
Position: Yes if incurred for the purpose of gaining or producing income from a business.
Reasons: 18(1)(a)
Signed on July 11, 2006
XXXXXXXXXX
Dear XXXXXXXXXX:
I am replying to your letter addressed to the Honourable James Flaherty, Minister of Finance, concerning whether the costs incurred by a business to achieve and maintain ISO 9000 registration are deductible for income tax purposes. I received a copy of your letter from Minister Flaherty's office on May 31, 2006.
The amount of an outlay or expense incurred by a taxpayer is usually deductible in computing the taxpayer's business income to the extent that the amount is incurred for the purpose of gaining or producing income from the business and is reasonable in the circumstances. I am therefore pleased to inform you that it has always been the CRA's view that the expenses to achieve and maintain ISO 9000 registration meet these requirements and are therefore deductible in computing business income.
I appreciate the opportunity to respond to your concerns.
Sincerely,
The Honourable Carol Skelton, P.C., M.P.
Luisa A. Carpino, CA
(613) 832-3488
2006-019016
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2006
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2006
Email this Content