| Employment and Immigration Canada | |
| Policy and Program Development Branch | |
| 140 Promenade du Portage | File No. 5-9359 |
| Phase IV, 4th Floor | Maureen Shea-DesRosierss |
| Hull, Quebec | (613) 957-8953 |
| K1A 0J9 |
Attention: Mr. Georges Latour
January 29, 1990
Dear Sirs:
Re: Skill Investment Training Trust Fund: Proposal Guidelines
This is in reply to your letter of January 4, 1990 with documents attached.
You enquire as to whether the employer's contribution to a Training Trust Fund (the "Fund") is deductible for income tax purposes.
In our telephone conversation (Shea-DesRosiers/Oster) of January 16, 1990, Mrs. Oster advised that this programme has been in place for 2 to 3 years. She also stated that the employer's contributions vary for each Fund, and a Fund can be set up either by both an employee association and an employer or by an employee association only.
Since this programme has already been in operation for 2 to 3 years, we will offer our general comments on the programme itself but not on any specific Training Trust Fund that has already been set up. Any questions arising concerning an existing Fund should be addressed to the District Office of the employer in question.
It is our opinion that, provided the amounts are reasonable, we would expect that the employer's contributions to such a programme would be deductible in computing his income from his business.
The foregoing comments are an expression of opinion only and consequently are not binding on the Department, however, we trust they are of assistance to you.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate