12 February 2001 External T.I. 2000-0053625 - TUITION TAX CREDITS

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: questions on issuance of T2202As

Position: prior positions

Reasons: prior positions

		2000-005362
   XXXXXXXXXX 	Denise Dalphy, LL.B.
(613) 957-9231
February 12, 2001

Dear XXXXXXXXXX:

Re: Tuition Tax Credits

We are writing in reply to your letter dated October 23, 2000 wherein you requested our opinions concerning the tuition tax credit.

Written confirmation of the consequences inherent in particular transactions are given by this directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R4. Where the particular transactions are partially completed or completed, the enquiry should be addressed to the relevant Tax Services Office. However, we are prepared to provide the following comments which are of a general nature.

You have asked:

1. Whether T2202As should be issued where the tuition fees of a student are paid by a third party to XXXXXXXXXX and

2. What amount should be entered on a T2202A where an organization contracts with XXXXXXXXXX to purchase one space in a program that is eligible for the tuition tax credit and the amount paid by the organization is XXXXXXXXXX full non-subsidized rate for the education of one student (XXXXXXXXXX) and where an organization contracts with XXXXXXXXXX to provide training that is eligible for the tuition tax credit and the amount paid by the organization is fixed, regardless of the number of its employees receive the training.

Where XXXXXXXXXX has determined that the student is enrolled in a qualifying educational institution in a qualifying educational program, a T2202A should be issued to the student. It is not the responsibility of an educational institution to ascertain whether the student satisfies the requirements in paragraphs (a) and (b) of the definition of "qualifying educational program". The amount to be entered as tuition on the T2202A is the amount that is charged to other students attending the course, even if the employer had to pay more than the fee for regular, unsubsidized students. Of course, the amount that is entered on the T2202A cannot exceed the amount that is actually paid to the educational institution for a student. The same amount would also be entered on a person's T4, where applicable.

We understand that XXXXXXXXXX is an educational institution in Canada that is a university, college or other educational institution providing courses at a post-secondary level and that XXXXXXXXXX is certified by the Minister of Human Resources Development as an educational institution that provides training that furnishes a person with skills for an occupation. You have asked whether, for the purposes of the tuition tax credit and the education amount, an educational institution can be an educational institution described in both subparagraph 118.5(1)(a)(i) and subparagraph 118.5(1)(a)(ii) of the Act.

Yes, a particular educational institution can be an institution that is described in both subparagraph 118.5(1)(a)(i) and subparagraph 118.5(1)(a)(ii) of the Act. Please note that definitions of the educational institutions are defined somewhat differently for the purposes of the tuition tax credit and the education amount. We enclose copies of IT-515R, Education tax credit, and IT-516R2, Tuition tax credit, for your reference.

The foregoing comments represent our general views with respect to the subject matter. As indicated in paragraph 22 of Information Circular 70-6R4, the above comments do not constitute an income tax ruling and accordingly are not binding on the Department. Our practice is to make this specific disclaimer in all instances in which we provide an opinion.

Yours truly,

Steve Tevlin
for Director
Business and Partnerships Division
Income Tax Rulings Directorate

Encl.

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