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 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 an educational assistance payment be made to a student before the end of the 13th consecutive week of being enrolled in a qualifying educational program at a post-secondary educational institution?
Position: Yes.
Reasons:
Educational assistance payments could be made in the first 13 weeks of enrollment but the aggregate amount that can be paid in that period is capped at $5,000 unless a greater amount is approved by the Minister of Human Resources Development.
Sue Waugh
Human Resources Development Canada
Program Policy 2002-014416
140 Promenade du Portage Phase IV M.P. Sarazin, CA
Hull QC K1A 0J9
June 6, 2002
Dear Ms. Waugh:
Re: Educational Assistance Payments
This is in reply to your electronic mail of June 4, 2002, requesting clarification with respect to the application of clauses 146.1(2)(g.1)(ii)(A) and (B) of the Income Tax Act (the "Act") and the comments provided to you in our letter dated May 15, 2002.
The expression "post-secondary educational institution" is defined in subsection 146.1(1) of the Act. Paragraph (b) of the definition requires that the beneficiary "was enrolled in a course of not less than 13 consecutive weeks". In order to qualify for an educational assistance payment from a registered education savings plan, subparagraph 146.1(2)(g.1)(i) of the Act requires that the individual is at the particular time enrolled in a qualifying educational program at a post-secondary educational institution. You ask whether the use of the past tense in the definition of post-secondary educational institution would require that the individual complete 13 consecutive weeks in the qualifying educational program before being eligible to receive the educational assistance payment.
In our view, the individual only has to be enrolled in a qualifying educational program that lasts for at least 13 consecutive weeks to be eligible for the educational assistance payment. The enrollment in the qualifying educational program is the key condition and educational assistance payments may be paid once the other conditions described in paragraph 146.1(2)(g.1) of the Act are satisfied. Consequently, the provisions of paragraph 146.1(2)(g.1) do not require the completion of 13 weeks in a qualifying educational program before being eligible to qualify for an educational assistance payment.
We trust that the above comments will be of assistance to you.
Yours truly,
Roberta Albert, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate
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