Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues:
Is an education program that is considered part-time by the educational institution but that the student will spend more that 10 hours a week eligible for the LLP
Position: No
Reasons:
The student has to be enrolled as a full-time student and as this is a part-time program it would not qualify.
XXXXXXXXXX 2002-015135
M. P. Baldwin, CA
October 1, 2002
Dear XXXXXXXXXX:
Re: Lifelong Learning Plan
This is in reply to your letter of July 8, 2002 requesting a technical interpretation regarding the Lifelong Learning Plan ("LLP"). In particular, you would like to know if a program in which your wife plans to attend would qualify for the LLP. The program (XXXXXXXXXX) is a part-time program that you feel meets all the qualifications for the LLP.
Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance income tax ruling request. For more information concerning advance tax rulings, please refer to Information Circular 70-6R5 dated May 17, 2002. Copies of information circulars and other publications are available at your local Tax Services Offices or on the Internet at http://www.ccra-adrc.gc.ca/formspubs/menu-e.html. Where the particular transactions are completed, the enquiry should be addressed to the relevant Tax Services Office. However, we are prepared to provide the following general comments, which may be of assistance.
The LLP permits an individual to withdraw an "eligible amount", as defined in subsection 146.02(1) of the Income Tax Act (the "Act"), from their registered retirement savings plan ("RRSP") to finance training or education for the individual or their spouse or common-law partner.
In order to qualify as an "eligible amount" within the meaning assigned by subsection 146.02(1) of the Act, the designated person (the student attending school) has to be enrolled at the particular time as a full-time student in a qualifying educational program or has received written notification before the particular time that the designated person is absolutely or contingently entitled to enroll before March of the following year as a full-time student in a qualifying educational program. Thus, both requirements that the student be a "full-time student" and that the student be enrolled in a "qualifying education program" must be satisfied.
In general, a "qualifying educational program", as defined in subsection 146.02(1) of the Act, is an educational program at a designated educational institution that lasts for a period of not less than three consecutive months and requires that the student spend not less than ten hours per week on courses or work in the program.
The educational institution is the one that determines who is a full-time or part-time student under its rules. Consequently, even if the student is enrolling in a program that requires spending 10 hours or more per week on courses or work in the program, you cannot use the LLP if the institution considers the student to be part-time.
Based on the information in your letter, the program your wife wishes to attend has been approved XXXXXXXXXX as a part-time program only. As noted above, it is the educational institution that determines whether a student is full-time or part-time under its rules and as such your wife would not be eligible to participate in the LLP as she would not be enrolled at the particular time as a full-time student in a qualifying educational program.
Information concerning the LLP is available in the Lifelong Learning Plan guide, which is available from your local tax services office or on the Internet site noted above.
We trust that the above comments will be of assistance to you.
Yours truly,
Roberta Albert, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate
