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.
Principal Issues: whether advanced placement courses qualify for tuition credit
Position: yes
Reasons: 118.5, especially the definition of "tuition" in 118.5(3)
REVIEW: N/A
June 12, 2002
Client Services HEADQUARTERS
XXXXXXXXXX TSO Partnerships Section
Denise Dalphy, LL.B.
Attention: XXXXXXXXXX (613) 941-1722
2002-013781
Advanced Placement Courses
Tuition Credits
This is in response to your memorandum dated April 25, 2002 wherein you enquired whether amounts paid to public secondary schools in XXXXXXXXXX for advanced placement courses will qualify for the tuition tax credit in subsection 118.5(1) of the Income Tax Act (the "Act").
Facts
Our understanding of the relevant facts is as follows:
1. "The Advanced Placement ("AP") Program is a cooperative educational endeavor between secondary schools and colleges and universities. Since its inception in 1955, the Program has provided motivated high school students with the opportunity to take college-level courses in a high school setting. Students who participate in the Program not only gain college-level skills, but in many cases they also earn college credits while they are still in high school. AP courses are taught by dedicated and enthusiastic high school teachers who follow course guidelines developed and published by the College Board."
2. "The Program's success is rooted in the collaborative efforts of motivated students, dedicated teachers, and committed schools. By participating in the Program, secondary schools make the commitment to organize and support at least one class that is equivalent to a first-year college course."
"There are currently more than 100,000 teachers leading AP courses in high schools worldwide. AP teachers are some of the world's finest. The Program is strengthened by their participation in professional development workshops and Summer Institutes and in the annual AP Reading where thousands of AP teachers and college faculty gather at college sites across the United States to score the AP Exams using rigorous guidelines."
3. "The AP Program plays a creative role as well as a facilitative one. As an intermediary among participating institutions, the Program does the following:
? Chooses college faculty and AP secondary school teachers who develop college-level course descriptions and examinations, and facilitates this development process.
? Administers and scores examinations based on the learning goals described in the AP Course Descriptions.
? Sends AP Grade Reports to the students, their schools, and their designated colleges."
[the information in paragraphs 1 to 3 above was obtained from the AP website.]
4. In Canada there are approximately 350 secondary schools that offer AP courses.
5. You have advised that in, XXXXXXXXXX, XXXXXXXXXX out of the XXXXXXXXXX secondary schools offer AP courses, and that, in particular, in XXXXXXXXXX.
We agree with your opinion, namely that these examination fees are "fees for an individual's tuition" within the meaning of subsections 118.5(1) and (3) of the Act and that, provided the fees are in excess of $100, the student is enrolled in a course (and is not merely writing an examination), and the course is accredited at a Canadian [emphasis added] university or college, the examination fees may be deducted pursuant to subsection 118.5(1) of the Act. Of course, whether any particular course is at a post-secondary school level is a question of fact. Without complete details of the content of and enrolment in the courses, we cannot confirm whether any or all of the AP courses in question are, in fact, bona fide courses offered at a post-secondary level.
We hope this opinion will be of assistance.
For your information a copy of this memorandum will be severed using the Access to Information Act criteria 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 copy severed using the Privacy Act criteria, 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.
Steve Tevlin
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
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