Taxation Article ( Summarizing) – Book Report/Review Example
Taxation Article (Summarizing) Summary of Facts The article provides a scenario wherein the employer of XXXXX enters into an agreement with the organization, which is funded solely by membership fees. However, the membership fees have been claimed to charge by the employer as a form of dues based on the bargaining working hours of the members. In order to validate the overall process, assessing taxable employment benefits of the membership fees paid by the employees is deemed to be mandatory.
Identifying and Assessing Principle Issue
According to the scenario provided in the article, one principal issue can be apparently observed. This is whether the membership fees paid by the employees for labor relation union of XXXXX provide taxable benefits or these are levied by the employer. In relation to the case of XXXXX, the benefits derived from the tax fees paid by the employees for labor relation have been penalized by the employer as a form of dues based on the bargaining working hours of the employees. Therefore, the issue can be duly considered as a defiance of the standard 6(1) (a) of the Canadian Income Tax Act, which made by the employer of the organization ((The Ministry of Attorney General, 2014).
Brief Summary of Conclusion
With regards to the Canadian Income Tax Act (Act), the Inclusion 6(1) (a) critically considers the employer of the organization as the sole recipient of the beneficial amount that to be paid or reimbursed. In this regard, the Act confirms that the value of board and other any sort of benefit are derived from the contribution made by the employer (The Ministry of Attorney General, 2014).
The Ministry of Attorney General. (2014). Income Tax Act: R.S.C., 1985, c. 1 (5th Supp.). Retrieved from http://laws-lois.justice.gc.ca/eng/acts/I-3.3/FullText.html#h-8