Principal Issues: Whether financial assistance received by students for the cost of travel, under Indigenous Services Canada’s Post-secondary Student Support Program and Inuit Post-Secondary Education Strategy , would be included in the amount of the student’s scholarship exemption, pursuant to paragraph 56(3) of the Income Tax Act.
Position: Question of fact, but likely yes, if the recipient is considered a qualifying student as defined in subsection 118.6(1) of the Income Tax Act.
Reasons: A scholarship or bursary will not be considered to be received in connection with the individual’s enrolment in an educational program except to the extent that it is reasonable to conclude that the award is intended to support the individual’s enrolment in the program.