Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
A college will evaluate an individual's past learning for the purposes of granting credits in respect of college courses. A fee of $50 is charged for each course evaluated. Does it qualify for the tuition fee tax credit?
Position TAKEN:
It doesn't qualify.
Reasons FOR POSITION TAKEN:
It is the Department's position that "tuition" refers to instruction. As instruction is not involved, the fees do not qualify for the credit.
940607
XXXXXXXXXX M. Eisner
Attention: XXXXXXXXXX
August 3, 1994
Dear Sirs:
Re: Tuition Tax Credit
This is in reply to your facsimile submission of March 8, 1994 in which you requested our comments on whether tuition receipts should be issued by XXXXXXXXXX (the College) in respect of "Prior Learning Assessment". We apologize for the delay in replying.
In the following comments, unless otherwise stated, all statute references are to the Income Tax Act S.C. 1970-71-72, c.63 as amended consolidated to June 10, 1993 (the Act).
You enclosed a copy of an information sheet entitled "Prior Learning Assessment In Ontario's Colleges". This document indicates that on February 12, 1993, the Ontario government announced the implementation of a system of prior learning assessment (PLA) for adult learners in the province's colleges of applied arts and technology. The implementation of PLA is being phased in over a three year period starting with 1993/94. Other information concerning PLA is set below:
1. PLA is a process in which a variety of tools are used to help learners reflect on, identify, articulate and demonstrate past learning which has been acquired through study, work and other life experiences and which is not recognized through formal transfer of credit mechanisms. One of the advantages of PLA is that it increases the efficiency of the colleges by eliminating the need for unnecessary training.
2. There are a variety of methods used to evaluate prior learning and translate it into college level credit(s). They can be combined into the following four major categories:
(a) Under portfolio development, a collection of materials is assembled which documents prior learning;
(b) Under the challenge process, a variety of evaluation activities are undertaken to demonstrate learning;
(c) Standardized examinations are undertaken; and
(d) Program and courses taken outside the Ontario college system are evaluated.
Implementation of PLA commenced in September of 1993. It has been decided that during the three year initial phase, PLA in the colleges will focus on portfolio development and challenge processes for the purpose of granting college credits. In the initial phase of implementation, learners will be eligible to obtain though PLA credits up to 75% of the courses required for a credential. An applicant is charged $50 for each course which is evaluated by the College.
3. (a) The comprehensive portfolio is a dossier or collection of material which identifies individual achievements, documents their experience and analyzes and organizes the knowledge and skills acquired. The portfolio is developed by the student and then used to request college recognition for the identified learning. Faculty qualified in the relevant fields review the evidence of learning documented in the portfolio, compare it with the learning outcomes of the courses for which credit is requested, and determine whether credits will be granted.
(b) The challenge process refers to special tests, projects or demonstrations candidates may undertake to earn credit for a specific college course without enroling in it. It measures an individual's learning achievements against course learning outcomes. Based on student performance, a credit may be granted.
Since it is proposed that the methods referred to in 2(c) and (d) will be implemented following the three-year initial phase-in and since it is our understanding pursuant to our telephone conversation on August 2, 1994 (Eisner/XXXXXXXXXX) that the details thereof have not been developed, we have not provided comments on these methods at this time.
In connection with the methods referred to in 2(a) and (b) above, the information provided to us indicates that the PLA process involves an evaluation of an individual's past learning experience for the purpose of relating it to programs and/or courses offered by colleges which operate under the auspices of the Ontario Provincial Government. Once the process is complete, the individual's educational status in relation to courses and programs offered by an Ontario college is considered to have been ascertained and the individual may proceed to register in courses to supplement that status.
In relation to the above comments in respect of the methods described in 2(a) and (b) above, subsection 118.5(1) of the Income Tax (the Act) permits a student to claim a tax credit in respect of "fees for the individual's tuition" that are described therein. It is the Department's view that this expression refers to fees for instruction rather than to fees for education. While the fees in question do, in our view, relate to education, the information provided to us on these two methods indicates that they cannot be regarded as being in the nature of a teaching or instructional expense. It is, accordingly, our view that the fees paid in respect of the methods in 2(a) and (b) do not qualify for the tuition tax credit. Accordingly, tuition receipts (form T2202As) should not be issues by the College in respect of such fees.
We trust that our comments will be of assistance to you.
Yours truly,
P.D. Fuoco
for Director
Business and General Division
Rulings Directorate
Policy and Legislation Branch
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