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:
Whether an organization which promotes and regulates sound labour relations, negotiates collective agreements and pursues other similar activities on behalf of its employer-members qualifies as a labour organization.
Position:
It does not.
Reasons:
The expression "labour organization" refers to organizations that carry on labour related activities for the benefit of workers.
5-953282
XXXXXXXXXX C. Chouinard
Attention: XXXXXXXXXX
February 5, 1996
Dear Sir:
Re: Labour Organizations - Paragraph 149(1)(k) of the Income Tax Act
We are writing in reply to your letter of December 14, 1995, wherein you inquire whether an organization whose objects are to consider and adopt methods for promoting and regulating sound labour relations, to negotiate collective agreements with a trade union or trade union representatives and to pursue related undertakings on behalf of its employer-members would be a labour organization within the meaning of paragraph 149(1)(k) of the Income Tax Act (the "Act").
A labour organization is generally an association of workers of the same trade, or of several allied trades, organized for the purpose of securing the most favourable conditions, wages or hours of work for its members. Although we agree that the expression "labour organization" is not restricted to trade unions, in our view, in order to qualify as a "labour organization", the organization must be organized and operated for the benefit of labour, which is normally understood to refer to the workers or employees. Since the organization you describe appears to have as its mandate to further the interests of employers only, in our view, it would not be considered to be a labour organization.
We trust that these comments will be of assistance.
Yours truly,
R. Albert
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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