17 July 1989 Income Tax Severed Letter 5-8225 - Union dues—Professional and Occupational Association Registration Act (Alberta)

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 Department. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

FAX SERVICES DOC. NO. July 17, 1989 # 291
5-8225
G. Ozols
(613) 957-2127
XXX

July 17, 1989

Dear Sirs:

Re: Professional and Occupational Association Registration Act (Alberta)

This is in reply to your letter of June 14, 1989, concerning the deduction of professional dues under subparagraph 8(1)(i)(i) of the Income Tax Act (the "Act").

XXX

Under subparagraph 8(1)(i)(i) of the Act, an employee may deduct annual professional membership dues in computing income or loss from an office or employment to the extent that they may reasonably be regarded as applicable to that source of income and provided that

• (a) they are annual dues (in contrast with entrance fees) necessary to maintain his professional status.
• (b) the amount claimed is paid in the taxation year and he is not reimbursed or entitled to be reimbursed, and
• (c) the professional status is recognized by a Canadian, provincial or foreign statute.

As you know, we had indicated previously that fees paid to the Appraisal Institute of Canada did not qualify for the deduction under subparagraph 8(1)(i)(i) of the Act because they did not meet requirement (c) above.

We have received the Alberta Act and also the proposed regulation of the XXX It is our opinion that registration under the Alberta Act and approval of the XXX regulation by the Lieutenant Governor in Council would create a professional status recognized by statute so that annual dues paid to the XXX XXX would be deductible under subparagraph 8(1)(i)(i) of the Act as described above. Subsection 895) of the Act outlines the extent to which such dues would not be deductible.

We would emphasize that our opinion is based on the assumption that the XXX will be registered under the Alberta Act and the regulations will be approved by the Lieutenant Governor in Council. We would also advise that only fees paid to the XXX would be deductible although they may include a portion which is remitted to the XXX However, fees paid directly to the XXX would not be deductible and fees paid to other associations similar to the XXX XXX would have to be reviewed on a case-by-case basis.

We trust the above is to your satisfaction.

Yours truly,

for Director
Small Business and General Division
Specialty Rulings and Directorate
Legislative and Intergovernmental
Affairs Branch

cc. Calgary District Office

Edmonton District Office

Assessing and Enquiries Directorate

Source Deductions Division