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.
960772
XXXXXXXXXX M. Eisner
Attention: XXXXXXXXXX
April 22, 1996
Dear Sirs:
This is in reply to your letter of February 12, 1996 in which you asked us whether the monthly dues paid by the employees of XXXXXXXXXX (the Association), are deductible by the employees for income tax purposes. We also acknowledge our telephone conversation (Eisner/XXXXXXXXXX) on March 7, 1996.
As discussed with you in our telephone conversation, we are unable to provide a binding ruling on transactions that are either completed or in progress. However, we offer the following comments on the situation set out in your letter.
You are concerned with the deductibility of employees' dues to fund various activities of the Association, which is a non-profit organization. The employer withholds amounts from the wages of its hourly employees and remits these amounts to the Association. The Association then uses the funds to provide (a) recreational activities for the employees and their families, (b) work clothing for the employees, and (c) training for the employees.
Subsection 8(2) of the Income Tax Act provides that no deductions are allowed in computing a taxpayer's income from an office or employment, except to the extent permitted by section 8. In relation to the above circumstances, there is no provision in section 8 which would allow a deduction to the employees for the amounts contributed to the Association.
We trust our comments will be of assistance to you.
Yours truly,
John F. Oulton
for Director
Business and Publications 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, 1996
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, 1996
Email this Content