Principal Issues:
Tax treatment of the costs incurred by a teacher in complying with his or her legal and professional obligation under the Alberta School Act (1988) to attend the annual two-day teacher's convention.
Position:
The Act generally does not provide for an employee to deduct convention fees and training expenses including related travel, meal and accommodation expense.
Reasons:
Reading of the relevant legislation.
2006-021230 XXXXXXXXXX D Tiu (613) 957-8961 January 29, 2007
Dear XXXXXXXXXX:
Re: Teacher's Convention Costs
We are writing in response to your October 27th, 2006 inquiry on the above subject and further to our subsequent telephone discussions (XXXXXXXXXX/Tiu). You inquired as to the tax treatment under the Income Tax Act (the "Act") of the costs incurred by a teacher in complying with his or her legal and professional obligation under the Alberta School Act (1988) to attend the annual two-day teacher's convention. Attendance is mandated under the School Act as comprising part of the teacher's employment contract with their boards.
You provided the following additional information:
- The teacher's convention is primarily an annual two-day professional development opportunity for teachers to enhance their professional growth. Since 1942, the Alberta Department of Education granted the Alberta Teachers' Association the responsibility of organizing the conventions.
- The costs incurred by a teacher may include:
- A convention fee, and
- Related travel, meals and accommodation expenses.
- Teachers who are members of a local teacher's association usually do not have to pay the convention fee because the cost is already included in their local membership dues. They still have to cover their own travel, meals and accommodation expenses.
- The existing employment agreement with the teachers does not require the teachers to pay their expenses while carrying out the duties of employment.
Written confirmation of the tax consequences inherent in a particular transaction or series of transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R5. In any event, a request cannot be considered for a ruling when the transactions are completed or where the issues involved are primarily questions of fact. Notwithstanding the foregoing, we are prepared to provide the following general comments.
The Act generally does not provide for an employee to deduct convention fees or training expenses, including related travel, meal and accommodation expenses. The only exception to this general rule can occur under paragraph 8(1)(f), applicable to a taxpayer who is employed in connection with the selling of property or negotiating of contracts for his or her employer and who is remunerated in whole or part by commissions or other similar amounts. For additional information on convention fee and training expense, please refer to our interpretation bulletin IT-357R2, Expenses on Training.
Additional Information
You have also requested additional information on a number of related matters.
For detailed information on employment expenses, please refer to tax guide T4044(E) Rev 06, a copy of which is accessible electronically at the following site:
http://www.cra-arc.gc.ca/E/pub/tg/t4044/README.html
Additional information on employment expenses is also available in our interpretation bulletins: IT-352R2, Employee's Expenses Including Work Space In Home Expenses; IT-522R, Vehicle, Travel and Sales Expenses Of Employees; and IT-103R, Dues Paid To A Union Or To A Parity Or Advisory Committee. Additional information on tuition fee expenses is available in IT-516R2, Tuition Tax Credit. Copies of all of the bulletins noted in this letter are available electronically at the following site:
http://www.cra-arc.gc.ca/menu/APAP_I_IT050-IT099-e.html#ti
We trust that the foregoing is satisfactory.
Yours truly,
Randy Hewlett
Section Manager
For Division Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch