8 May 2000 2000-0016776 - FULL TIME STUDENT FOR LLP

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:

1. Is the full-time question separate from the qualifying educational program question

2. If they are separate tests, is it reasonable to abide by the educational institution's opinion of whether the student is full-time or not.

Position:

1. They are separate tests;
2. Yes

Reasons:

1. The wording in the provisions for LLP;
2. It is the position of the CCRA and is consistent with the requirements for the education tax credit

		May 8, 2000

	HEADQUARTERS	HEADQUARTERS
	Hilde Huus	Mary Pat Baldwin
	Client Services Directorate	Deferred Income Plans
		  Section
		957-2087

2000-001677

Lifelong Learning Plan ("LLP")

This is in reply to your e-mail of March 27, 2000 in which you are requesting clarification on the requirements to participate in the LLP. In particular you ask: 1) Is the full-time question separate from the qualifying educational program question? In other words, does meeting the qualifying educational program 10 hour requirement satisfy the full-time question by itself, or is full-time an additional test? and 2)If they are separate tests, is it reasonable for us to abide by the educational institution's opinion of whether the student is full-time or not?

Pursuant to the definition section in 146.02(1) of the Act the following are the relevant definitions for the purposes of the above questions regarding the LLP:

"eligible amount" of an individual means a particular amount received at a particular time in a calendar year by the individual as a benefit out of or under a registered retirement savings plan if ... (f) the designated person

(i) is enrolled at the particular time as a full-time student in a qualifying educational program, or

(ii) has received written notification before the particular time that the designated person is absolutely or contingently entitled to enrol before March of the following year as a full-time student in a qualifying educational program:...

"full-time student" in a taxation year includes an individual to whom subsection 118.6(3) applies [i.e., mentally or physically impaired] for the purpose of computing tax payable under this Part for the year or the following taxation year.

As can be seen from the above definitions, in order to qualify for the LLP there is a 2 tier test. The designated person must be enrolled 1) as a full-time student and 2) in a qualifying educational program.

The term "qualifying educational program" is defined in subsection 118.6(1) and, for purposes of the LLP, the term "full-time student" is not defined in the Act except to extend it to include mentally or physically impaired students enrolled on a part-time basis. Paragraphs 5 to 7 of IT-515R2 (Education Tax Credit) provide general comments regarding the CCRA's interpretation of "full-time student".

We recently reviewed the issue of the determination of "full-time student" and have maintained the position that the determination of whether a person is a "full-time student" is the responsibility of the educational institution.

In conclusion, a requirement for the LLP is that the designated person be a full-time student in a qualifying education program; and it is our position that it is the responsibility of the educational institution to determine whether the designated person is considered to be a full-time student or not.

for Director
Financial Industries Division
Income Tax Rulings Directorate