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29 January 1992 Ministerial Letter 9135138 F- Deductibility of Membership Dues Unedited CRA Tags 8(1)(i)(i)                                          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.  ...

Further, we concur with your view that where in fact the shares of a corporation issuing such obligations may not reasonably be considered to derive their value, directly or indirectly, primarily from portfolio investments in foreign property the investments described in your questions 1 to 3 would not be foreign property be reason of paragraph 206(1)(d.1) of the Act. ...

However, levies made during a year on some or all members of a trade union to provide funds for the prosecution of a legal strike of the union are considered by the courts as annual dues if the levies are capable of recurring and have not been designated by the union as “special assessments”. The interpretation of what constitutes a “special assessment” was considered by the Federal Court- Trial Division in 1987 in Darrel H. ...

However, levies made during a year on some or all members of a trade union to provide funds for the prosecution of a legal strike of the union are considered by the courts as annual dues if the levies are capable of recurring and have not been designated by the union as “special assessments”. The interpretation of what constitutes a “special assessment” was considered by the Federal Court- Trial Division in 1987 in Darrel H. ...

A reimbursement is considered to be a repayment made to a person with respect to expenses incurred. Where the amount received in respect of relocation expenses is considered to be an allowance, the full amount is generally required to be included in the employee's income although the recipient, in almost all cases, will be entitled to claim moving expenses. ...

However, the rationale for living in a certain place is not sufficient to enable the place of residence to be considered to be somewhere other than where it actually is. ... Thus, when applying the guidance provided by the Williams case that one needs to consider and weigh the factors which connect an Indian's income to a reserve, the fact that a Band has a reserve is considered significant. ...

Her Majesty the Queen, the Supreme Court of Canada reconsidered the approach to use in determining whether income should be considered to be situated on a reserve and thus tax exempt. ... Although the location of your residence may be a factor to consider, residency on reserve is insufficient alone to determine that employment income should be considered to be connected to the reserve. ...

Such income and benefits are considered to be property of an Indian on a reserve. In order to reach that decision the Court had to conclude that the situs of the debtor (being on a reserve) is not the sole factor to be considered in exempting income from taxation since unemployment insurance benefits are not paid from a reserve. ...

The central management and control of an organization is usually considered to be exercised by the group that performs the function of a board of directors of the organization. ... I would also like to point out that the employment duties of each particular Indian employee must be considered to determine if they were in connection with the employer's non-commerical activities carried on exclusively for the benefit of Indians who for the most part live on reserves. ...

However, the rationale for living in a certain place is not sufficient to enable the place of residence to be considered to be somewhere other than where it actually is. ... Thus, when applying the guidance provided by the Williams case that one needs to consider and weigh the factors which connect an Indian's income to a reserve, the fact that a Band has a reserve is considered significant. ...