Principal Issues: Are mess dues paid by members of the Canadian Forces deductible as professional dues under the Income Tax Act?
Position: No.
Reasons: Reading of the legislation.
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Dear Colleague:
Thank you for your letter received on February 27, 2007, supporting the position of one of your constituents that mess dues paid by members of the Canadian Forces should qualify for a deduction under subparagraph 8(1)(i)(i) of the Income Tax Act.
In order for any organization's dues to qualify for a deduction as professional dues under subparagraph 8(1)(i)(i) of the Act, the nature and purpose of the organization to which the dues are paid must be considered. In this case, the organization to which the dues are being paid is the mess or mess hall. The purpose of a mess is to provide meals and/or entertainment facilities for members of the military to socialize, with a view to building morale and esprit de corps.
Professional organizations whose professional membership dues are deductible typically have characteristics such as a recognized certification or licensing process that must be completed before members can achieve their professional status. They set their own standards for professional and ethical training and conduct, and provide continuing education courses required of their members.
Since it does not appear that the characteristics described above apply to a mess, the deduction for professional dues contemplated by subparagraph 8(1)(i)(i) of the Act would not apply to mess dues. This result is consistent with the 1995 decision of the Tax Court of Canada in Boyer c. La Reine.
I trust that the information provided will be helpful to you in responding to your constituent.
Sincerely,
The Honourable Carol Skelton, P.C., M.P.
J. Bertram
2007-022718
April 11, 2007