Tax Planning Strategy 165 | Trade, Business and Professional Body Subscriptions
Subscriptions, joining fees, levies and contributions paid to professional associations may be deductible under s 8-1 and/or s 25-55. Payments to trade and professional associations may be in the form of joining fees, periodic subscriptions or levies and other contributions. Deductions for periodic subscriptions are available under s 8-1 where it is incidental and relevant to the derivation of the taxpayer’s assessable income (whether as an employee or business owner). The decision in each case is a question of fact and degree.
For example, taxpayers who are practicing in a particular profession can claim a deduction for periodic subscriptions to professional associations which are concerned with providing specialised services to people in the taxpayer’s profession (TR 2000/7). E.g. an accountant paying CPA Australia subscriptions.
A tyre manufacturer/retailer paid an annual membership fee to a company whose policy and activities were directed towards encouraging the construction, maintenance and use of roads. A deduction was allowed on the basis that increased road usage would increase demand for the taxpayer’s products ((1963) 13 TBRD Case N52).
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2