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.
7-911272
Dear Sir:
Re: Bank Charges
This is in response to your letter dated February 12, 1991, concerning the deductibility of bank charges.
24(1)
You question whether under the Income Tax Act (the "Act") you are permitted to report your pension income net of the bank charges.
Other than for certain specific exceptions, the Act denies any deduction in respect of an outlay or expense except to the extent that it was made or incurred by the taxpayer for the purpose of gaining or producing income from business or property. In our view no deduction in respect of bank charges incurred to forward money from one personal bank account to another is provided for in the Act. Since such charges are not incurred for the purpose of gaining or producing income from business or property, they would not be deductible in computing income. Therefore, your gross pension income would be subject to tax when filing your income tax return.
An amendment to the Act would be necessary in order to provide you with a deduction for the above bank charges. Since amendments to the Act are the responsibility of the Department of Finance you may wish to contact that Department at the following address:
L'Esplanade Laurier 140 O'Connor Ottawa, Ontario KlA 1J2
and provide them with the details of your situation. We trust this is the information you require.
Yours truly,
ChiefForeign SectionsReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1991
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© Sa Majesté la Reine du Chef du Canada, 1991
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