Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
MINISTER/DM'S OFFICE 95-04002M
ADM'S OFFICE
RETURN TO 15TH FLOOR, ALBION TOWERS
AUTHOR
SUBJECT OR CORPORATE CASE FILE
June 7, 1995
XXXXXXXXXX
Dear XXXXXXXXXX:
I am writing in reply to your letter of May 10, 1995, concerning the income tax treatment of compensation paid to holders of political office.
As you noted in your letter, the Income Tax Act provides that expense allowances received by members of a provincial legislature be excluded from income. The allowance does not have to be reported as income to the extent that it does not exceed one-half of the amount fixed under law as the members' salary, indemnity and other remuneration. A similar provision exists for certain municipal officers.
You have asked me for stastistics on the amount of revenue potential related to such allowances. I regret that I cannot provide this information since the Department's reporting procedures do not separately identify the specific taxpayer group or the amount of the excluded allowances.
A change to the treatment of these expense allowances, as you suggested, would require an amendment to the Income Tax Act. As such amendments are the responsibility of the Honourable Paul Martin, Minister of Finance, it was appropriate that you also sent him a copy of your correspondence for consideration.
Although I regret my response cannot be more detailed, I appreciate being made aware of your suggestion.
Yours sincerely,
David Anderson, P.C., M.P.
J. Szeszycki
957-2135
May 31, 1995