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.
This is in reply to your memorandum of June 16, 1989, wherein you requested our opinion with respect to the deductibility of voluntary membership fees paid to XXX.
It is our understanding that the XXX.
It is your view that the XXX is not deductible pursuant to subparagraph 8(1)(i)(iv) of the Act due to the wording in subsection 8(1) of the Act which states, in part, that "... there may be deducted such of the following amounts as are wholly applicable to that source or such part of the following amounts as may reasonably be regarded as applicable thereto:".
XXX
We have reviewed the information contained in the letter of March 7, 1989, from the XXX submitted with your memorandum and offer the following comments. It is our view that the annual membership fee paid by voluntary members may be deductible pursuant to subparagraph 8(1)(i)(iv) of the Act as it represents annual dues paid to maintain membership in a trade union and the dues may reasonably be regarded as applicable to the members' employment income.
In interpreting whether the amount may be applicable to an office or employment for the purposes of subparagraph 8(1)(i)(iv) of the Act, we feel the following comments contained in paragraph 2 of IT-158R2 are applicable:
- "In determining whether a payment is applicable to an office or employment for the purposes of 1 above, such a payment need not be essential for an employee to hold a position or Job. However, there must be a reasonable degree of relationship between it and the position or job".
XXX
With respect to your view that a voluntary member does not actually hold a "membership" in the XXX.
It is our view that an individual would hold a "membership" in the XXX once the executive had accepted an individual as such. If the executive decides not to accept an individual for membership the annual fee is returned in which case no claim would be made by that individual with respect to the XXX.
Concerning the rights and privileges of a voluntary member, Article V, Section 2 of the XXX provides that a voluntary member enjoys the same rights, privileges and responsiblities as any other member other than tenure services and financial support in the event of a strike. It is our view that these restrictions are not sufficient to deny the status of "membership" to the voluntary members.
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© Her Majesty the Queen in Right of Canada, 1989
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© Sa Majesté la Reine du Chef du Canada, 1989
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