Décary,
J
(orally):—The
point
at
issue
is
whether
or
not
a
payment
equivalent
to
a
portion
of
a
deduction
of
2%
of
the
earnings
of
defendant
to
a
fund
to
be
used
partially
for
income-replacement
purposes
in
case
of
total
disability
or
sickness
is
deductible
or
not
under
the
provisions
of
the
Act.
The
defendant
is
a
member
of
the
Association
of
Canadian
Television
and
Radio
Artists
hereinafter
called
ACTRA.
In
becoming
a
member
of
the
above
association
the
defendant
agreed
to
be
bound
by
the
constitution
and
by-laws,
rules,
regulations,
codes,
schedules
and
agreements
of
the
association
and
ACTRA
became
his
exclusive
collective
bargaining
agent
for
minimum
terms
and
conditions
of
engagement.
The
defendant
is
a
free-lance
artist.
The
constitution
of
ACTRA
provides
at
Article
IX,
sub-article
901
for
an
insurance
and
retirement
plan;
at
Article
XIV,
sub-article
1402
for
a
national
agreement,
code
and
schedule.
Therefore
the
defendant
is
bound
by
these
provisions
and,
consequently,
when
he
secures
a
contract
as
a
member
of
ACTRA,
he
has
to
pay
2%
of
his
earnings
to
ACTRA
which
in
turn
remits
the
said
amount
to
the
fund.
Whether
the
payment
is
made
directly
by
the
defendant
to
the
fund
or
by
the
channel
of
ACTRA
is
irrelevant.
There
is
a
relation
between
the
payment
of
the
portion
of
the
2%
applicable
to
the
income-replacement
plan
and
the
contract
for
services
or
the
engagement
because
there
could
not
be
any
earnings
without
that
payment.
The
amount
represented
by
the
portion
of
the
2%
is
paid
in
order
to
continue
being
a
member
of
ACTRA
and
in
my
view
such
an
expense
is
deductible
under
the
generally
accepted
accounting
principles
and
under
the
provisions
of
paragraph
12(1)(a)
of
the
Act
because
it
is
made
for
the
purpose
of
gaining
income
from
the
business
of
free-lance
artist,
that
is,
for
the
purpose
continuing
to
be
able
to
gain
income
from
that
business.
The
appeal
of
plaintiff
is
dismissed
with
costs.
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