29 January 1992 Ministerial Letter 9135138 F - Deductibility of Membership Dues

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.

                                         January 29, 1992

19(1)

The Honourable Otto Jelinek, Minister of National Revenue, has asked me to respond to your letter of December 5, 1991, concerning the deductibility, under section 8(1)(i) of the Income Tax Act, of membership dues paid to the 24(1)

The issue of recognition of an employee's professional status has been carefully considered on prior occasions with respect to other legislation and other professions.  While I am sympathetic to your position, I have to stress that it is the employee's professional status, and not that of the Institute, which must be recognized by statute. 

Where a profession is organized into an association or society and that association or society has the statutory right to regulate the entry into and the practice of that profession and the conduct of its members, it is the Department's view that the employee's professional status is recognized by statute by virtue of the employee's membership in that recognized association.

24(1)

Consequently, based on the information available at this time, I have to confirm that fees paid to the  24(1)by employees are not deductible under subparagraph 8(1)(i)(i) of the Act.

I wish to thank you for bringing this matter to my attention.  Should you become aware of any other legislation which might alter the Department's position or if you require further explanation, please do not hesitate to contact Mr. Bryan Dath, Director of the Business and General Division of the Rulings Directorate.  He is aware of our correspondence and may be reached at 957-2089.

Yours sincerely,

Pierre Gravelle, Q.C.

A.Humenuk/ga

957-2131

January 20, 1991

913513