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:
Whether student enrolled full-time in "distance education program" is in "full-time attendance" as required by 146.1(2)(g).
Position TAKEN:
No.
Reasons FOR POSITION TAKEN:
"Attendance" means physical presence - routine.
XXXXXXXXXX 950547
Attention: XXXXXXXXXX
May 30, 1995
Re: Registered Education Savings Plan (RESP)
This is in reply to your letter of February 21, 1995, in which you ask for our comments concerning paragraph 146.1(2)(g) of the Income Tax Act (the "Act"). In particular you ask whether students enrolled on a full-time basis but participating through "distance education programs" qualify as students in "full-time attendance" at a post-secondary educational institution.
Your question relates to an actual fact situation and therefore the determination of the tax consequences is the responsibility of the local tax services office. Although we cannot confirm an interpretation which would bind the Department in this matter, we can provide the following general comments for your assistance.
The Department's interpretation of the phrase "full-time attendance" in the context of the above-noted registration requirement for RESP's is contained in Information Circular 93-3 ("Registered Education Savings Plans"). A copy is enclosed for your information. At paragraph 42 of the Circular it states that a person enrolled in correspondence courses is not "in attendance" at the institution and will not satisfy the requirement. Note, as specified in paragraph 41 of the Circular, that a student must be both in "attendance" and "full-time" to satisfy the provision.
The phrase "full-time attendance" is used in other parts of the Act and the Department has commented on its meaning in other publications. For example, Interpretation Bulletin IT-515R ("Education Tax Credit") comments on the requirement for "full-time attendance" contained in subsection 118.6(2) of the Act applicable to the 1990 and preceding taxation years. A copy is enclosed for your information. The explanation contained in paragraphs 26 through 30 describes the Department's position in greater detail and is relevant to our interpretation of the same phrase in paragraph 146.1(2)(g) of the Act.
We also point out that the subsection 118.6(2) education tax credit calculation was amended in order to delete the requirement for full-time attendance. Thus, for the 1991 and subsequent taxation years, physical attendance is not required. The Technical Notes explaining the amendment stated as follows:
that the purpose of this amendment is to ensure that the credit is also available to full-time post-secondary students enrolled in distance education programs or "correspondence courses".
The Department's interpretation of the meaning of "full-time attendance" is thus supported by the explanation of the impact of this amendment.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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