Principal Issues: 1. What is the definition of the term "accountant" as it pertains to the section 34 WIP election?
2. Would a lawyer for bankruptcy qualify for the section 34 WIP election?
Position: 1. In the context of section 34 the term "a business that is a profession" refers to the type of business carried on by individuals who are members of organizations or associations that are governed by statute, that have the power to regulate certification, the issuance of licences to practice the profession, to examine candidates for membership and the right to practice, to establish standards of professional conduct, and to discipline members for infractions of the established standards.
2. It is a question of fact.
Reasons: 1. The term "accountant" is not defined in the Income Tax Act. For CRA purposes an accountant is a professional carrying on a professional business or professional practice.
2. The fact alone that a lawyer is performing certain work, such as a real estate agent or a trustee, is insufficient to determine whether such work constitutes a business that is the professional practice of a lawyer.