Rebate on Union Dues

May 5, 2006

Brothers and Sisters,

Earlier this week, Brother Don Lesuk mentioned to me about the GST rebate for Union dues and I asked that he put together a short note on it to send out to the membership.

Here it is, and I want to thank Don for not only putting this together but doing so as quick as he did.

Fraternally,

Bill Brehl
President
TCRC MWED

Bill,

As requested information on the GST 370E form deduction which we are able to use.

We are allowed a GST rebate on our union dues, meal and lodging expenses from our TL2 form. To begin with don't get this confused with the GST rebate box that you check off on the first page of your income tax form. The GST 370E comes along with your (employment expense forms) which also includes your TL2 form. Once you have completed your TL2 form you enter this amount along with the union dues you paid in their proper columns. You then tally up these 2 amounts and calculate 7% of that amount. You then enter this on line 457 of your income tax form which reduces your tax payable.

Many tax preparers are reluctant to use the TL2 let alone the GST 370E form, if someone does your tax for you check to see this has in fact been done.

If you haven't been filling out a GST 370E form on any of your previous years you still are allowed to do so under "Fairness Act" legislation, now that is to say you can fill in this form for all years since 1991 and ask for a reassessment. If you do so, you must be prepared to send in a copy of your TL2's along with your completed GST 370E form. The envelope you use to send these forms in will have to be marked at the bottom left hand corner ATTN: Fairness. This form is not that hard to fill out and it is well worth your while to do so.

One last point, while completing the GST 370E form you will be required to put in CPRail's business number in the proper column on your upper right side of the form. The number is 100769694RP, they will not accept your request without this number.

As an example, if your TL2 and union dues add up to $3000.00 a 7% reduction will reduce your taxes well over $200.00.