File: 11910-5(DRM)
Doc: 1195
Subsection 123(1)
I refer to your memorandum of March 7, 1995 to Joanne Houlahan, concerning the tax status of XXXXX[.]
Facts
1. XXXXX - XXXXX XXXXX was established on June 26, 1992, by a private act of the XXXXX XXXXX which recognizes it as a body corporate under the Business Corporations Act.
2. As outlined in the XXXXX the objects of XXXXX are to: "establish, maintain, conduct, and support an educational institution for secondary and post-secondary XXXXX education ...".
3. XXXXX was given the authority to grant diplomas, certificates and degrees in divinity to its graduates under the XXXXX[.]
4. XXXXX is a registered charity for purposes of the Income Tax Act, but receives no government funding.
5. XXXXX is accredited by the XXXXX, which is the only accrediting association for bible colleges in XXXXX[.]
6. Individuals applying for admissions to XXXXX are required to be graduates of high school or equivalent, or have mature student status.
7. XXXXX[.]
8. The XXXXX defines "university" as a "Provincial university established or continued by or under this Act". XXXXX is not a university as established or continued in section 15 of this Act.
9. The XXXXX provides for the recommendation and evaluation of programs offered by private colleges that lead to a baccalaureate degree issued by the private college, other than for programs of divinity. XXXXX issues degrees in divinity and therefore is outside the scope of the XXXXX[.]
Issye
1. Does XXXXX qualify as a "public college" as defined in subsection 123(1) of the ETA?
2. Does XXXXX qualify as a "university" as defined in subsection 123(1) of the ETA?
Response
1. XXXXX is not a "public college" as defined in subsection 123(1) of the ETA (please see policy statement 186 which outlines the requirements necessary for an organization to qualify as a "public college").
2. XXXXX is a recognized degree granting institution and as such meets the definition of "university" in subsection 123(1) of the ETA.
Analysis:
The definition of university in subsection 123(1) states that the university must be a recognized degree granting institution. In order to qualify as such, an institution must be established, incorporated, or continued by an act of a province which specifically provides the circumstances under which an institution may grant degrees. Note, the ability to grant a degree is insufficient to satisfy the definition in subsection 123(1), the institution must currently be offering programs for which degrees are granted upon completion of the programs.
Although XXXXX is not governed by the XXXXX of the province, it was established by a special act of the provincial legislature, which provides for the ability to grant its graduates degrees in divinity. Currently, XXXXX offers a religious education program which upon completion, students obtain a XXXXX[.]
XXXXX admission standards (i.e., post-secondary graduation status or equivalent, or mature student status) is comparable to other universities in the province or for that matter, the country. Furthermore, XXXXX is fully accredited by XXXXX the only organization in XXXXX that offers accreditation to XXXXX colleges.
If you have any questions or comments, please contact Joanne Houlahan, Manager, Public Service Bodies, at (613) 954-7945 or Dwayne Moore, Tax Policy Officer, at (613) 954-4206.
J.A. Venne
Director
Special Sectors
GST Rulings & Interpretations
c.c.: D. Moore
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