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 a Review Program at a Canadian University aimed at candidates wishing to write the CMA final exams qualifies for the tuition credit and the education credit.
Position TAKEN:
Program qualifies for the tuition credit but students who are employed in a similar field cannot take the education credit.
Reasons FOR POSITION TAKEN:
1. Post-secondary course at a post-secondary institution.
2. Definition of a "qualifying educational program" does not include any program taken by a student during a period in respect of which the student receives income from an office or employment and in connection with that office or employment.
XXXXXXXXXX 2001-007713
C. Tremblay, CMA
May 30, 2001
Dear XXXXXXXXXX:
Re: Tuition and Education Tax Credits
This is in reply to your letter of November 29, 2000, sent to the XXXXXXXXXX Taxation Services Office and subsequently forwarded to us on March 27, 2001. We apologize for the delay.
You enquired as to whether an examination review program (the "Review Program") that is offered by the XXXXXXXXXX, for candidates wishing to write the CMA Canada Entrance Examination, qualifies the individual student for the tuition tax credit under subsection 118.5(1) of the Income Tax Act (the "Act"). You state that the XXXXXXXXXX offer courses to middle and upper management individuals in order to enhance their skills and be better able to achieve their personal objectives in their chosen employment field. The XXXXXXXXXX wishes to issue form T2202A indicating that the fees paid qualify for the tuition credit and that each candidate qualifies for the education credit pursuant to paragraph 118.6(2)(b) of the Act.
As explained in Information Circular 70-6R4, we cannot confirm the tax implications of particular transactions unless the transactions are proposed and are the subject matter of an advance income tax ruling request. However, we can provide you with the following general comments.
Based on your description of the Review Program and provided the individual is enrolled at the University, it is our opinion that fees paid for the Review Program will qualify for purposes of the calculation of the tuition credit pursuant to subparagraph 118.5(1)(a)(i) of the Act.
It is also our view that the student taking the Review Program qualifies for the education tax credit for purposes of paragraph (b) of element B in subsection 118.6(2) of the Act.
However, it is noted that a qualifying educational program does not include any such program if a student takes the program,
(i) during a period in respect of which the student receives income from an office or employment, and
(ii) in connection with, or part of the duties of, that office or employment.
Accordingly, an employee who continues to receive a salary while attending a course related to employment would not be eligible for the education tax credit. However, it is the student's responsibility to determine whether he or she is eligible to claim the education tax credit.
We trust our comments are of assistance.
Yours truly,
Steve Tevlin
For Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
- 2 -
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2001
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2001
Email this Content