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
Are upgrading courses taken at a university that are not at a post secondary level but integral towards a XXXXXXXXXX program eligible for the tuition and education tax credits.
Position TAKEN
NO
Reasons FOR POSITION TAKEN
118.5(1)(a)(i) courses at a post secondary school level
118.6 (1)- "qualifying educational program" is a program at a post secondary school level.
Paragraph 12 of IT 515R2.
XXXXXXXXXX 2001-008155
C. Tremblay, CMA
June 13, 2001
Dear XXXXXXXXXX:
Re: Post Secondary Level Courses
This is in reply to your letter of April 16, 2001, wherein you asked for our comments on the eligibility for tuition/education tax credits of certain upgrading courses offered in the XXXXXXXXXX.
The relevant tax services office provides confirmation of the tax consequences associated with completed transactions. Opinions concerning proposed transactions involving specific taxpayers will only be provided in response to a request for an advance income tax ruling. For more information concerning advance tax rulings, please refer to Information Circular 70-6R4 dated January 29, 2001, issued by the Canada Customs and Revenue Agency. Copies of information circulars and interpretation bulletins are 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. However, we can provide you with the following general comments.
If a tuition tax credit claim relates to tuition fees paid to a university, college or other educational institution in Canada providing courses at a post-secondary school level as referred to in subparagraph 118.5(1)(a)(i) of the Income Tax Act (the "Act"), subparagraph 118.5(1)(a)(ii.1) of the Act requires that the courses for which the fees are paid must actually be at the post-secondary school level. Thus, for example, if an educational institution in Canada provides courses at the post-secondary school level as well as other courses, even though the educational institution can qualify for purposes of subparagraph 118.5(1)(a)(i) of the Act, tuition fees paid to the institution for any of the "other" courses cannot qualify for a tuition tax credit under paragraph 118.5(1)(a) of the Act. Generally, for a course to be considered to be at the "post-secondary school level," the course should provide credit towards a degree, diploma or certificate; and a prerequisite for taking the course should be completion of secondary school. It is generally assumed that a course is at the post-secondary school level if the education ministry for the province in which the course is given considers it to be at that level.
As to the education tax credit, paragraph 12 of Interpretation Bulletin IT-515R2, states that in the case of a student enrolled at a designated educational institution, the program of study must be at a post-secondary school level in order to qualify. In our view, upgrading courses to allow entry into a university program, although considered integral to the success of the student, are not at a post-secondary school level.
Accordingly, the full-time students enrolled exclusively in those non-credit courses described in your letter are not eligible for the entitlement to the education tax credit. However, a student may be eligible for an education tax credit on a part-time student basis, based on the total university credit courses enrolled in during a particular fall or winter term.
We regret that our response could not be more favourable.
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
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