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.
Principal Issues:
The issue is whether expenses incurred in campaigning for a position as an elected officer of a municipality are deductible.
Position TAKEN:
There is no provision under which the expenses are deductible.
Reasons FOR POSITION TAKEN:
The position is consistent with comments in 912730 and the decisions rendered in court cases.
952551
XXXXXXXXXX M. Eisner
Attention: XXXXXXXXXX
October 26, 1995
Dear Sirs:
Re: Expenses - Election Campaign
This is in reply to your letter of September 26, 1995 in which you asked us for our comments on the deductibility of expenses incurred in campaigning for a position as an elected officer of a municipality.
It is our general view that the campaign expenses do not satisfy the requirements of paragraph 18(1)(a) of the Income Tax Act (the Act). They are, therefore, not deductible in computing business or property income. In the case of employment income, section 8 of the Act describes amounts that may be deducted while subsection 8(2) of the Act specifies that no other amounts may be deducted from that income source. As section 8 does not permit the deduction of campaign expenses, they are not deductible in computing employment income. There is no other provision in the Act which would permit the deduction of such expenses.
We trust our comments will be of assistance to you.
Yours truly,
P.D. Fuoco
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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, 1995
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, 1995
Email this Content