Montgomery v. Canada
A-799-97
Rothstein J.A.
23/3/99
8 pp.
Appeal from trial judgment ((1997), 152 D.L.R. (4th) 764) holding membership dues paid by appellant to Appraisal Institute of Canada for 1988 taxation year not deductible in computing income from employment for that year under Income Tax Act, s. 8(1)(i)(i)-Appellant real estate appraiser-S. 8(1)(i)(i) permitting deduction of annual professional membership dues, payment of which necessary to maintain professional status recognized by statute-Trial Judge holding "professional status recognized by statute" requiring enactment of legislation providing for regulation of professional organization, and no such legislation in 1988-Appeal allowed-Cases relied upon by Trial Judge not directly dealing with meaning of "recognized" in s. 8(1)(i)(i)-Indeed, Minister of National Revenue v. Montgomery, [1970] C.T.C. 115 (Ex. Ct.) and cases following, reading into Income Tax Act, words not there-Respondent's approach requiring Court to supplement word "recognized" in s. 8(1)(i)(i) with words such as "incorporating" or "providing for regulation of" profession, or similar words-While many, perhaps even most, professional organizations will be established, regulated by statute, Income Tax Act not concerned with incorporation, regulation of professional societies; no necessary implication "recognized" in s. 8(1)(i)(i) including such requirements-S. 8(1)(i)(i) concerned with allowing, as deduction from income, professional dues paid in order to maintain professional status recognized by statute-Purpose of term "recognized by statute" only to establish standard against which validity of professional status in question measured-Had Parliament intended to restrict meaning of "recognized" to include requirement of being "incorporated", "created", "regulated" by statute, open to it to use words to that effect, but did not-In this case there is statutory recognition of professional status of appraisers for purposes of s. 8(1)(i)(i)-Income Tax Act, S.C. 1970-71-72, c. 63, s. 8(1)(i)(i).