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: Can a Canadian College of Arts and Technology issue T2202 certificates to students who take the program by distance learning.
Position: Generally, YES
Reasons: Provided all other requirements of 118.1(6) are met, students only need to be enrolled in the program to be entitled to the education tax credit.
XXXXXXXXXX C. Tremblay
2000-002975
Attention: XXXXXXXXXX
September 19, 2000
Dear Sir,
This is in reply to your letter of May 30, 2000, requesting a ruling on the issuance of the Education Tax Credit certificates to students enrolled in your distance education programs. You state that the students are enrolled in credit courses equivalent to credit courses offered to students who physically attend classes at the College Campus. You also state that the time required to read/review the material and submit assignments is similar in hours to students physically attending classes.
As requested we have considered your enquiry and have provided some comments below. However, we cannot confirm the tax implications of particular transactions unless the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R3. Also, we have not been provided all the relevant information with respect to the criteria described below. Thus, our comments are of a general nature only.
Generally, the education tax credit is available in respect of distance education programs for students who are otherwise enrolled in qualifying or specified educational programs at designated educational institutions in Canada computed by the number of months enrolled in the program. Accordingly, a "designated educational institution" may issue a T2202 or a T2202A to a full-time student enrolled in a "qualifying educational program" or to a part-time student enrolled in a "specified educational program". The expressions "qualifying educational program", "specified educational program" and "designated educational institution" are defined in subsection 118.6(1) of the Income Tax Act (the "Act"). We have enclosed a copy of Interpretation bulletin IT-515R2, which provides the Canada Customs and Revenue Agency's ("CCRA") views on these terms.
If the student is enrolled in a qualifying educational program as a full-time student at a designated educational institution, the student may be entitled to an education tax credit of $200 for each month during which the student was so enrolled, times the appropriate percentage (currently 17%). 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 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. This requirement can be met by a student taking courses by correspondence or by a person enrolled in a distance education program. The CCRA must generally rely on the institution's determination as to whether an individual is registered as a full-time student.
The term "qualifying educational program" requires, in part, that the program 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 a "qualifying educational program" may result in the student also meeting the educational institution's requirements for full-time enrolment, these tests remain 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.
Where the student is enrolled at a designated educational institution but does not qualify as a full-time student, the individual may still qualify for the part-time education tax credit. To qualify, the individual must be enrolled in a specified educational program that provides that each student in the program spend not less than 12 hours in the month on courses in the program. A "specified educational program" means a program that would be a "qualifying education program" if that term were read without reference to the "10 hours per week" test. If the above criteria is met, the individual may be entitled to an education tax credit of $60 for each month during which the student was so enrolled, times the appropriate percentage (currently 17%). Again, this requirement can be met by a student taking courses by correspondence or by a person enrolled in a distance education program.
We trust that these comments will be of assistance.
Yours truly,
Jim Wilson
for Director
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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