| 5-8225 | |
| G. Ozols | |
| (613) 957-2127 | |
| Dear Sirs: |
Re: Professional and Occupational Association Registration Act (Alberta)
This is in replyto your letter of June 14,1989 concerning the deuction dues under subparagraph 8(1)(i)(i) of the Income Tax Act(the "Act").
Under subparagraph 8(1)(i)(i) of the Act, an employee may deduct annual profesional membership dues in computing income or loss from an office or employment to the extent that they may ber reasonably be regarded as applicable to that source of income and provided that
(a) they are annual dues (in contrast with entrance fees) necessary to maintain his professional status.
(b) the amount claimed is paid in the taxation year and he is not reimbursed or entitled to be reimburesed, and
(c) the professional status is recognized by a Canadian, provincial or froreign statue.
As you know, we had indicated prviosly that fees paid to Appraisal Institute of Canada did not qualify for deduction under subparagraph 8(1)(i)(i) of the Act because they did not meet requirement (c) above.
We have received the Alberta Act and also the proposed regulation of the 24(1). It is our opion that registration under the Lietenant Governor in Council would create a professional status recognized by statue so that annual dues paid to the 24(1) would be deduictible under subparagraph 8(1)(i)(i) of the Act which dues would not e deuctible.
We would emphsize that our opinion is based on the assupmtion that the 24(1) will be registered under the Alberta Act and the regulations will be approved by the Lieutenant Governor in Coucil. We would also advise that only fees paid to the 24(1) would be deductible although they may include a portion which is remitted to the 24(1). However, fees paid to other associations similar to the 24(1) would have to be reviewed on a case-by-case basis.
We trust the above is to your satisfaction.
Yours truly,
for DirectorSmall Business and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch
c.c. Calgary District Office Edmonton District Office Assessing and Enquiries Directorate Source Deductions Division