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.
Institute of Chartered Accountants
of Alberta
Roundtable Questions
Question No. 6
Professional Dues Paid on an Employee's Behalf
Paragraph 8(1)(i) of the Act provides that certain professional membership dues paid by an employee are deductible in calculating income from employment. In situations where the employer pays the professional dues on behalf of the employee and includes the amount on the employee's T4 as a taxable benefit, will Revenue Canada deny the deduction of the professional dues by the employee on the basis that the dues were not paid by the employee?
DEPARTMENT'S POSITION
Since the context of paragraph 8(1)(i) states that professional membership dues paid by the taxpayer in the year are deductible, there is no provision, in the Act, that would allow the deductibility of employer paid dues. However, in accordance with our administrative policy of fairness and equality to all taxpayers, the dues are deductible by the employee if they otherwise qualify under paragraph 8(1)(i) of the Act.
Professional membership dues are deductible in computing employment income under subparagraph 8(1)(i) of the Act if:
- they are annual dues paid in the year,
- they are necessary to maintain the taxpayer's professional status, and
- the taxpayer's professional status is recognized by statute.
IT-158R2 emphasizes that it is the employee's professional status that must be recognized by statute and that dues are only deductible where membership in an organization is necessary to retain his or her professional status.
J. Szeszycki
May 4, 1995