Changes in Tax policy?

Sociology tutor Jonathan Cloud claimed a deduction for his Student Association fees in his tax return earlier this year.

He received a letter from an Inland Revenue examiner informing him that since "the Students' Union is not related directly to your employment I will be disallowing your claim when I send your 1968 assessment."

In a return letter Jonathan explained that while he was "personally prepared to accept this decision . . . "he wished for clarification of the principle behind the decision.

He drew the department's attention to the following related facts: that he was employed by the University and that "if I had not been a Student I would not have been given the job."

He explained that as a student, membership of the Students Association and its fees were compulsory for him and that:

"Hence, were to be employed in this capacity I must pay Student Union fees."

Jonathon concluded his letter:

"This matter is perhaps a relatively trivial one financially, but it is. I think, a matter of some practical concern to students receiving no outside support."

The examiner who replied stated the provisions on the Land and Income Tax Act.

1954, Section 129 c.c that deduction was possible only when fees paid were "directly) related to that employment."

"As will be seen, having to attend University is merely ancillary and a condition of your employment, and in no way relates to Union fees payable." the examiner said in his letter.

It has been the practice in the past for some students to claim such deductions. Usually they have been successful but the extended correspondence and firm refusal may indicate that the policy has changed.