Section 189 — Excise Tax Act: Dues in respect of employment

For the purposes of this Part, where an amount is paid by a person to an organization as a membership due paid to a trade union as defined in section 3 of the Canada Labour Code , or in any Act of the legislature of a province providing for the investigation, conciliation or settlement of industrial disputes, or to an association of public servants the primary object of which is to promote the improvement of the members’ conditions of employment or work, a due that was, pursuant to the provisions of a collective agreement, retained by the person from an individual’s remuneration and paid to a trade union or association referred to in paragraph (a) of which the individual was not a member, or a due to a parity or advisory committee or similar body, the payment of which was required under the laws of a province in respect of an individual’s employment, the organization shall be deemed to have made an exempt supply to the person and the amount shall be deemed to be consideration for the supply.