15 September 2010 External T.I. 2010-0361981E5 - Issuing T2202 or T2202A

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.

Principal Issues: In what taxation year should the entity issue the T2202 orT2202A form if the programs are taken over different taxation years?

Position: The T2202A should reflect the amount paid by the student for the seminars attended in that taxation year.

Reasons: Prior positions

XXXXXXXXXX
2009-036198
George A. Robertson, CMA
September 15, 2010

Dear XXXXXXXXXX :

Re: Issuing T2202 or T2202A certificates

This is in response to your electronic letter of December 3, 2009 where you requested our views regarding the issuance of a T2202 for tuition tax credit, where an individual started in one year and graduated in the succeeding year.

Written confirmation of the tax implications inherent in particular transactions may only be provided by this Directorate where the transactions are proposed and are the subject matter of an advance income tax ruling submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Rulings, dated May 17, 2002. This Information Circular and other Canada Revenue Agency ("CRA") publications can be accessed on the Internet at http://www.cra-arc.gc.ca/formspubs/menu-e.html. Where the particular transactions are completed, the inquiry should be addressed to the relevant Tax Services Office.

Education tax credit ("ETC")

The CRA's general views regarding the ETC is contained in Interpretation Bulletin IT-515R2, Education Tax Credit ("IT-515R2") and Pamphlet P105 Students and Income Tax ("P105") which are available on the CRA web site at www.cra-arc.gc.ca.

Pursuant to subsection 118.6(2) of the Income Tax Act ("the Act"), a student's ETC is based on the number of months in which they are enrolled as a full-time student in a "qualifying educational program" at a "designated educational institution". A part-time student may also be eligible for a reduced ETC if he or she is enrolled in a "specified educational program". These terms are defined in subsection 118.6(1) of the Act and are explained in more detail in IT-515R2 and P105.

To claim only the ETC, the student must obtain from the designated educational institution form T2202, Education and Textbook Amounts Certificate, or form T2202A, Tuition, Education and Textbook Amounts Certificate ("T2202A"), as proof of enrolment. It is the student's responsibility to determine if the education and textbook tax credits can be claimed.

Tuition tax credit (TTC)

The CRA's general views regarding TTC are contained in Interpretation Bulletin IT-516R2, Tuition Tax Credit (IT-516R2) and P105. As outlined in section 118.5 of the Act, in general terms, the TTC is available to students who were, during a calendar year, enrolled at an educational institution in Canada that is:

i) a university, college or other educational institution providing courses at the post-secondary school level, or

ii) certified by the Minister of Human Resources and Skills Development to be an educational institution providing courses, other than courses designed for university credit, that furnish a person with skills for, or improve a person's skills in, an occupation.

The TTC is available with respect to any fees for the individual's tuition paid in respect of the year to the educational institution if the total of those fees exceeds $100.

To claim the TTC, the student must obtain from the designated educational institution T2202A as proof of enrolment. It is the student's responsibility to determine if the education and textbook tax credits can be claimed.

T2202A or an official income tax receipt is the appropriate certification to issue to students for tuition fees paid. In circumstances where an educational institution that is certified by the Minister of Human Resources and Skills Development Canada (within the meaning of subparagraph 118.5(1)(a)(ii) of the Act) does not use Form T2202A, a letter of certification in the format set out in IT-516R2 should be issued to the student. There is no requirement for an educational institution to provide copies of Form T2202A or official income tax receipts for tuition directly to the CRA. However, students who claim a tuition tax credit on their T1 return must be able to provide a copy of the document, should we request it. We may also request the student to provide proof that they are working towards an occupation, or improving their skills in an occupation, by taking the course.

We are also of the view that the expression "in respect of the year to the educational institution" in subsection 118.5(1) of the Act should be interpreted as the period in which the course(s) is taken. Paragraph 23 of IT-516R states, in part,

"the tuition tax credit for a particular taxation year can be based only on tuition fees paid for that year. Thus, for example, when the academic session covered by eligible tuition fees paid in a particular year extends from September of that year to April of the next year, the tuition tax credit for the fees is computed for each of those years as one-half of the fees. . ."

We trust that the above comments address your concerns.

Yours truly,

Sharmini Ratnasingham
Assistant Director
Ontario Corporate Tax Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch