To be eligible for an Active Membership in the “Society,” various requirements respecting educational requirements were specified. In addition, Regulations enacted in support of legislation in certain provinces imposed requirements respecting services to be provided by a member of the Society. ETA Sched V, Pt. VI, s. 18, generally exempted “a supply of a membership made by an organization membership in which is required to maintain a professional status recognized by statute.”
The Excise and GST/HST Rulings Directorate queried the view in 2014-0530691E5 , respecting language, similar to that quoted above, appearing in ITA s. 8(1)(i)(i), that:
a professional status would generally have to be acknowledged in the statute itself to satisfy the “recognized by statute” condition in subparagraph 8(1)(i)(i) … .
After stating that Montgomery:
clarified that the phrase “recognized by statute” should be afforded a broad interpretation, and that “recognized by statute” does not necessarily mean that a professional status was incorporated, created, or regulated by a particular statute
and noting that 2014-0530691E5 was somewhat inconsistent with 2012-0444181M4, the Income Tax Rulings Directorate concluded:
[W]e would agree with your views that for purposes of the meaning of the phrase “professional status recognized by statute” … applying a textual, contextual and purposive analysis, a “professional status” can be “recognized by a statute” for purposes of subparagraph 8(1)(i)(i) … even if it is only recognized in the supporting regulations of an act.
However … where a “professional status” is only acknowledged in an organization’s bylaws, the “professional status” would not likely be considered “recognized by statute” … .