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 subsection 118.6(3) waives the education tax credit requirement for enrolment as a "full-time" student, in light of the definition "qualifying educational program".
Position TAKEN:
Yes.
Reasons FOR POSITION TAKEN:
The requirement for "full-time" enrolment is in paragraph (a) of in variable B of subsection 118.6(2), and not in the definition of "qualifying educational program". As indicated in paragraph 5 of IT-515R2, the requirement for enrolment as a full-time student at a designated educational institution is a separate test over and above the requirement respecting "qualifying educational program". While in many instances meeting the minimum requirements of "qualifying educational program" may result in the student also meeting the educational institution's requirements for full-time enrolment, these tests remain, as explained above, distinct and are not necessarily the same. For example, in certain instances, institutions establish full-time enrolment based on a minimum amount of credits, whereas a qualifying educational program requires a minimum of hours which, as indicated in paragraph 11 of IT-515R2, may include both lecturing time and a reasonable estimate of time for work assignments or other items listed in paragraph 11 of the bulletin. Accordingly, a student may meet the requirements of "qualifying educational program" and still not qualify for enrolment as a full-time student at the educational institution.
May 17, 2000
Client Services Directorate HEADQUARTERS
Individual Publications Section M. Azzi
957-8972
Attention: Janet Carkner
2000-001261
Education Tax Credit- Disabled Students
This is in reply to your memo of March 8, 2000, wherein you requested clarification on the education tax credit as it applies to disabled students. In particular, you are requesting confirmation as to whether subsection 118.6(3) of the Income Tax Act (the "Act') waives the education tax credit requirement for enrolment as a "full-time" student. Your concern seems to arise from the fact that, in your view, the term "qualifying educational program" requires, by definition, full-time enrolment. As your concerns relate specifically to the credit provided in paragraph (a) of variable B of subsection 118.6(2) of the Act, for purposes of this reply, we will limit our discussion to that credit, such that we will not discuss the part-time student credit provided in paragraph (b) of variable B of subsection 118.6(2) of the Act.
Paragraph (a) of variable B of subsection 118.6(2) of the Act authorizes a student to claim an education tax credit for each month in the calendar year during which the student is enrolled in a qualifying educational program as a full-time student at a designated educational institution. At the outset, it should be noted that the requirement for "full-time" enrolment is in paragraph (a) of variable B of subsection 118.6(2), and not in the definition of "qualifying educational program". As indicated in paragraph 5 of IT-515R2, the requirement for enrolment as a full-time student at a designated educational institution is a separate test over and above the requirement respecting "qualifying educational program". As your letter appears to allude to "attendance" at a designated educational institution, we would also stress that the requirement for attendance at the educational institution has been removed from section 118.6 of the Act since 1991. This requirement was removed so that the education tax credit is also available in respect of otherwise qualifying distance education programs or correspondence courses.
The term "enrolled...as a full-time student" is not defined in the Act. However, paragraphs 5 to 7 of IT-515R2 provide general comments regarding the CCRA's interpretation of this term. As indicated in paragraph 5 of IT-515R2, the requirement for enrolment as a full-time student at a designated educational institution must ultimately be met on the basis of the facts of each case. Thus, the CCRA must generally rely on the institution's determination as to whether an individual is registered as a full-time student. It should also be noted that paragraph (a) of variable B of subsection 118.6(2) of the Act specifically requires enrolment "as a full-time student at a designated educational institution." Therefore, the student's classification by the institution is relevant for purposes of this provision.
As regards the term "qualifying educational program", it is defined in subsection 118.6(1) of the Act. This definition provides, in part, that the program must run for at least 3 consecutive weeks and must provide that each student taking the program spend at least 10 hours per week on courses or work in the program. While in many instances meeting the minimum requirements of "qualifying educational program" may result in the student also meeting the educational institution's requirements for full-time enrolment, these tests remain, as explained above, distinct and are not necessarily the same. For example, in certain instances, institutions establish full-time enrolment based on a minimum amount of credits, whereas a qualifying educational program requires a minimum amount of hours which, as indicated in paragraph 11 of IT-515R2, may include both lecturing time and a reasonable estimate of time for work assignments or other items listed in paragraph 11 of the bulletin. Accordingly, a student may meet the requirements of "qualifying educational program" and still not qualify for enrolment as a full-time student at the educational institution.
For purposes of calculating the education tax credit in subsection 118.6(2) of the Act, subsection 118.6(3) of the Act removes the requirement that the student be enrolled as a "full-time" student if, as provided in paragraph 118.6(3)(a) of the Act, the student is eligible for the disability tax credit for the year or, as provided in paragraph 118.6(3)(b) of the Act, the student cannot reasonably be expected to be enrolled on a full-time basis because of the student's mental or physical impairment as certified in writing by a practitioner listed in paragraph 118.6(3)(b) of the Act. Accordingly, where either paragraph 118.6(3)(a) or (b) of the Act applies, the disabled student will qualify for the education tax credit in paragraph (a) of variable B of subsection 118.6(2) of the Act, even if he or she is not enrolled as a full-time student, provided that the student is enrolled in a qualifying educational program and the other requirements for claiming the credit are met.
Finally, as you know, the list of practitioners who can provide certification under paragraph 118.6(3)(b) of the Act was recently extended in an amendment to subsection 118.6(3) of the Act by S.C. 1999, c. 22, s. 37(4). Accordingly, we agree with your comment that it would be more accurate to list these practitioners in the CCRA's publications.
We trust that these comments will be of assistance.
Jim Wilson
for Director
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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