REMOVAL OF TIER II HOCKEY ROOM & BOARD TAX CLEARS HURDLE
“It was absolutely ridiculous to expect these community-owned teams and young hockey players to pay tax on the minimal allowance the players receive to pay for room and board.”

OTTAWA – Private Members Bill C-295 cleared another hurdle in the House of Commons Wednesday evening as Members of Parliament voted unanimously to pass the bill through Report stage.

The bill, introduced by Prince Albert M.P. Brian Fitzpatrick and seconded by Yorkton-Melville M.P. Garry Breitkreuz, would allow non-profit amateur junior hockey teams to once again operate without the fear of being taxed out of business. Currently, the Canada Revenue Agency still considers an amateur hockey player’s room and board allowance as taxable income.

“Tier II hockey league players, such as those in the Saskatchewan Junior Hockey League (SJHL), have always been considered amateur athletes and therefore do not receive income for their services,” said Breitkreuz. “Yet in 2003, the Canada Customs and Revenue Agency (CCRA) audited and assessed each SHJL team between $8,000 and $12,000 in taxes owed.

“It was absolutely ridiculous to expect these community-owned teams and young hockey players to pay tax on the minimal allowance the players receive to pay for room and board.”

The 2003 CCRA decision to tax the SJHL teams was made under the former Liberal government and former Finance Minister Ralph Goodale. Although the bill unanimously passed Report stage Wednesday, Goodale was not present for the vote and has yet to show any support for the hockey teams so integral to his home province.

“With 12 teams, the SJHL is a very important piece of our heritage, and it serves as more than just a source of entertainment,” said Breitkreuz. “It has also been a necessary stepping stone for many players heading toward a National Hockey League (NHL) career, or for the many who are awarded scholarships to further their education at universities and colleges. When Bill C-295 comes into force, the 142 Tier II teams across Canada will be able to focus on day-to-day operations and not unfair treatment by the CCRA.”

Bill C-295 will now enter Third Reading stage in Parliament, and debate on the issue will continue over the coming weeks.

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