16 August 2001 External T.I. 2001-0096505 - LLP QUALIFYING EDUCATIONAL PROGRAM

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: Is an education program which lasts for 8 weeks, 40 hours per week and which will be taken 4 times during the duration of a trade program, a qualifying educational program for the Lifelong Learning Plan ("LLP")?

Position: No

Reasons: A qualifying educational program for the LLP must be at least three consecutive months in length and require the student to spend 10 hours or more per week on courses in the program.

XXXXXXXXXX 								2001-009650
G. Allen
August 16, 2001

Dear XXXXXXXXXX:

Re: Qualifying Educational Program for Purposes of the Lifelong Learning Plan ("LLP")

This letter is in reply to your letter dated August 2, 2001 concerning whether the trade program you are attending is considered a "qualifying educational program" for purposes of the LLP. Your letter indicates that the educational program you are attending is offered over an eight-week period for forty hours per week and that this will be repeated four times until the completion of the program.

Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance income tax ruling request. For more information concerning advance tax rulings, please refer to Information Circular 70-6R4 dated January 29, 2001. Copies of information circulars are available at your local Tax Services Office or on the Internet at http://www.ccra-adrc.gc.ca/formspubs/menu-e.html. Where the particular transactions are completed, the enquiry should be addressed to the relevant Tax Services Office. However, we are prepared to provide the following general comments, which may be of assistance.

The LLP permits an individual to withdraw an "eligible amount", as defined in subsection 146.02(1) of the Income Tax Act (the "Act"), from their registered retirement savings plan ("RRSP") to finance training or education for the individual or their spouse or common-law partner.

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 enroll 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.

In general, a "qualifying educational program", as defined in subsection 146.02(1) of the Act, is an educational program at a designated educational institution that lasts for a period of not less than three consecutive months and requires that the student spend not less than ten hours per week on courses or work in the program. As the program you are attending does not last for at least three consecutive months, the program would not be considered a qualifying educational program for purposes of the LLP. Accordingly, any amounts that you might withdraw from your RRSP to attend this program would not be an "eligible amount" for purposes of the LLP.

Information concerning the LLP is available in the Lifelong Learning Plan guide (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 the above comments will be of assistance.

Yours truly,

Roberta Albert, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate