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.
Principal Issues: Should the tradesperson's tool deduction limit be increased?
Position: Referred to Department of Finance
Reasons: Question of tax policy
November 29, 2010
XXXXXXXXXX
Dear XXXXXXXXXX :
The office of the Honourable Tony Clement, Minister of Industry, forwarded to me a copy of your correspondence, which I received on October 7, 2010, concerning the maximum amount deductible for a tradesperson's tools expenses.
You mention in your correspondence that the $500 maximum deduction is insufficient because you spend much more than that amount on the tools you need for your trade. The Canada Revenue Agency (CRA) calculates the tradesperson's tools deduction according to the formula in paragraph 8(1)(s) of the Income Tax Act.
The CRA administers and enforces the Act as passed by Parliament. However, your concerns about the tradesperson's tools deduction relate to tax policy and, along with any request for amendments to the Act, are the responsibility of the Department of Finance Canada. I am therefore forwarding a copy of our correspondence to the Honourable James M. Flaherty, Minister of Finance, for his consideration.
I trust that this referral is helpful.
Yours sincerely,
Keith Ashfield
c.c.: The Honourable James M. Flaherty, P.C., M.P.
Minister of Finance
House of Commons
Ottawa ON K1A 0A6
Renée Shields
(613) 957-2049
2010-038353
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