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: Would a course with 6 hours of classes a week taken by a part-time student at a Canadian university be a "qualifying educational program" for the Lifelong Learning Plan ("LLP")?
Position: Question of fact whether additional work brings it up to 10 hour minimum for "qualifying educational program" purpose but in any event "part-time student" status disqualifies the student from the LLP.
Reasons: In order to be an "eligible amount", the student has to be enrolled as a full-time student in a qualifying educational program. Unless a student has a mental or physical impairment, a part-time student will not be eligible to participate in the LLP.
XXXXXXXXXX 2000-001873
M.P. Sarazin
May 8, 2000
Dear Sir:
Re: Qualifying Educational Program for Purposes of the Lifelong Learning Plan
This is in response to your letter dated February 23, 2000, which was sent to the XXXXXXXXXX Tax Services Office and forwarded to us, wherein you asked whether your course being taken at the University of XXXXXXXXXX requiring 6 hours of classes per week for the period January 2000 to April 2000 would be a qualifying educational program for purposes of the Lifelong Learning Plan ("LLP"). The expression "qualifying educational program" has the meaning assigned by subsection 146.02(1) of the Income Tax Act (the "Act").
The determination of whether a specific program offered through a Canadian university will qualify as a qualifying educational program for purposes of the LLP is a question of fact. In order to make such a determination, we would have to have all of the facts related to the specific program. Consequently, we can only offer the following general comments.
The LLP lets an individual withdraw an "eligible amount" of up to $10,000 a year (to a $20,000 maximum) from his or her registered retirement savings plan ("RRSP") after 1998 to finance full-time training or education for the individual or his or her spouse.
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 enrol 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 educational program" must be satisfied.
The definition of "full-time student" in subsection 146.02(1) of the Act includes any disabled person entitled to a full-time education tax credit. Since the University of XXXXXXXXXX considers you a part-time student, you are not eligible to participate in the LLP unless you are a disabled person entitled to a full-time education tax credit.
A "qualifying educational program" is defined in subsection 146.02(1) of the Act to mean a qualifying educational program (as defined in subsection 118.6(1) of the Act without reference to paragraphs (a) and (b) of that definition) at a designated educational institution for a period of not less than three consecutive months. A qualifying educational program must provide that the student spend not less than ten hours per week on courses or work in the program that is a program at a post-secondary school level.
The determination of whether a program that only consists of six hours of class time per week will normally require or expect a student to spend an additional four or more hours per week on work related to the course is a question of fact. The particular designated educational institution should know whether a course requires an additional four or more hours per week for work, assignments or other items listed above. We note that this condition is irrelevant if you are already prohibited from participating in the LLP because you are a part-time student.
You will find the Agency's general views regarding the LLP in the Guide titled Lifelong Learning Plan (LLP) (RC4112). A copy of the LLP Guide is available from your local tax services office or on the internet at the following site - http://www.ccra-adrc.gc.ca/formspubs/menu-e.html.
We trust this clearly explains the "full-time" and "qualifying educational program" requirements of the LLP.
Yours truly,
Patricia Spice
for Director
Financial Industries Division
Income Tax Rulings Directorate
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