| September 11, 1989 | |
| Assessing and Enquiries Directorate | Glen Thornley |
| Enquiries and Taxpayer Assistance Division | 957-2101 |
| P. McNally | |
| Director | File No. 7-4280 |
Subject: Interest - Official Agents Accounts
This is in reply to your memorandum of August 28, 1989, concerning the treatment of interest earned on deposited political contributions.
19(1) and 24(1)
Our comments
In our view, the Elections Act requires only that an Official Agent open up a bank account in the name of the candidate into which contributions can be deposited and from which cheques can be issued to pay election and other permitted expenses. There is no requirement that this be an interest bearing account, thus the decision to open such an account or to invest surplus funds in interest earning certificates is a personal one. Interest earned in this manner will have to be reported by the candidate as he or she is the beneficial owner of such funds. A.L. Davidson of Legal Services, is in agreement with this view.
With respect to a candidate being covered by the non-profit organization provisions of paragraph 149(1)(1), it is our view that a political candidate for election is not a club, society or an association. Hence a candidate could not avail himself or herself of this provision.
We trust our comments will be of assistance to you.
B.W. DathDirectorSmall Business and General DivisionSpecialty Rulings DirectorateLegislative and IntergovernmentalAffairs Branch