24 November 1994 Internal T.I. 9423807 - DRIVERS EDUCATION AND THE TUITION TAX CREDIT

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 high school student enrols in a driving school course. Does the related tuition qualify for the tuition tax credit?

Position TAKEN:

It is unlikely that the cost of the course would qualify for the credit.

Reasons FOR POSITION TAKEN:

The student likely undertook the course for the purpose of acquiring the privilege to operate a vehicle rather than for the purpose of being furnished with skills for an occupation.

November 24, 1994

       Assessment of Returns             Business and General
	  Directorate	                   Division
G. W. Venner	                 M. Eisner
	Director	                     (613) 957-2138

		                               942380

Tuition Tax Credit

We are replying to the memorandum of September 13, 1994 which was submitted by M.D. Leigh (Chief, T1 Processing Restructure Section) and concerns the above-noted subject.

We have been requested to consider a situation where a high school student enrolled in a driving school course and transferred the related tuition tax credit to his or her parent under section 118.9 of the Income Tax Act (the Act).

For clarification purposes, our comments on this situation relate to a student who undertook the course so that he or she might be issued with a driver's license for the first time.

In relation to the above situation, subparagraph 118.5(1)(a)(ii) of the Act refers to an education institution that has been certified by the Department of Human Resources and Labour as being an educational institution which provides courses that furnish a student with skills for, or improve a student's skills in, an occupation. However, in order for a student to be able to claim the tuition tax credit in respect of a course taken at such an institution, one of the conditions that must be satisfied is that the purpose of the student's enrolment in the course must have been to acquire skills for, or to improve skills in, an occupation (clause 118.5(1)(a)(ii.2)(B) of the Act).

In the above circumstances where a high school student might acquire a driver's license for the first time, it seems to us that it can be presumed that the individual undertook the course for the purpose of acquiring a life skill. It is, accordingly, our view that the cost of the course would generally not qualify for the tuition tax credit.

However, we also note that these comments are general in nature and that it is a question of fact whether or not the purpose test referred to above has been satisfied by a particular individual.

If further technical assistance is required, we would pleased to provide our views.

B.W. Dath
Director
Business and General Division
Rulings Directorate
Policy and Legislation Branch