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.
SUMMARY: Tuition credit—dentistry equipment fees—ITA-118.5—Whether students enrolled in a university dentistry degree program can claim a tuition tax credit for fees paid to the university for the use its dental equipment and instruments.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
PRINCIPAL ISSUES: Can students enrolled in a university dentistry degree program include fees charged by the university for use of dental equipment and instruments in their calculation of the tuition tax credit?
POSITION: Yes.
REASONS: The amount charged by the university, although labelled a “lease” is actually similar to a lab fee. The individual student does not retain the equipment upon completion of the program.
May 26, 2003
XXXXXXXXXX TSO HEADQUARTERS
Income Tax Rulings
Attention: XXXXXXXXXX Directorate
Renée Shields
(613) 948-5273
2003-001255
Tuition Tax Credit for Dentistry Equipment Fees
This is in response to your electronic correspondence of April 9, 2003 asking for our comments on whether students enrolled in a dentistry degree program can claim the tuition tax credit for fees paid to a university for the use of its equipment and instruments.
We have been provided with a sample receipt issued by the XXXXXXXXXX (the “University”) to its dentistry students. The receipt refers to “XXXXXXXXXX” and also says, “XXXXXXXXXX.” Several students have received letters from the Canada Customs and Revenue Agency (the “CCRA”) disallowing the use of this receipt for tuition tax credit purposes. We are advised that the CCRA letters indicate that the claim is disallowed because the cost of goods of enduring value that are retained by the student are not eligible expenses.
In the course of a discussion with XXXXXXXXXX at the University's Faculty of Dentistry (Shields/XXXXXXXXXX), we were advised that the fee is levied for the use of the University's dental instruments, dental equipment, dental chairs and other similar items necessary to the study of dentistry. The equipment is located and used in an on-campus simulated dental clinic. The faculty is responsible for the repair and maintenance of the equipment and at all times retains ownership of the equipment.
Paragraph 26 of Interpretation Bulletin, Tuition Tax Credit () states that charges for use of library or laboratory facilities, whether identified separately or included as course or subject fees are considered eligible tuition fees. Paragraph 27 ofstates that fees for goods of enduring value that are to be retained by students are not eligible tuition fees.
In the circumstances described above, it is our opinion that the fees charged by the University fall within the eligible tuition fees described in paragraph 26 of.
We trust that these comments will be of assistance.
For your information a copy of this memorandum will be severed using the Access toInformation Actcriteria and placed in the CCRA's electronic library. A severed copy will also be distributed to the commercial tax publishers for inclusion in their databases. The severing process will remove all material that is not subject to disclosure, including information that could disclose the identity of the taxpayer. Should your client request a copy of this memorandum, they can be provided with the electronic library version, or they may request a severed copy using thePrivacy Actcriteria, which does not remove client identity. You should make requests for this latter version to Mrs. Jackie Page at (819) 994-2898. A copy will be sent to you for delivery to the client.
Mickey Sarazin, C.A.
for Director
Financial Industries Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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, 2003
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, 2003