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: Can an educational institution withhold a T2202A for a year in respect of which the fees are paid, by reason of the fact that a dispute exists over fees for a subsequent year?
Position: It would be inappropriate to withhold the T2202A
Reasons: Because there is no legislative requirement to issue a T2202A at all, it cannot be said that the institution is required to issue the slip in this situation.
March 24, 2005 Renée Shields
Re: Issuance of T2202A reporting slips
This is in response to your electronic correspondence of March 4, 2005 inquiring about the obligation of a college to issue a T2202A slip. In particular, you are requesting our comments on whether a college is required to issue a T2202A slip for tuition paid for a program in a particular year notwithstanding that a dispute exists between the parties regarding fees due for a separate program in a subsequent year.
The situation outlined in your letter appears to relate to a factual one, involving a specific taxpayer. Although it is not this Directorate's practice to comment on proposed transactions involving specific taxpayers other than in the form of an advanced income tax ruling, we are prepared to provide the following general comments, which may be of assistance.
The T2202A is a form prepared by an educational institution that captures the information necessary for an individual to claim the education and tuition tax credits if the requirements of the Income Tax Act (the "Act") are met. Information on the tuition tax credit is contained in Interpretation Bulletin IT-516R2, "Tuition Tax Credit." The education tax credit is discussed in Interpretation Bulletin IT-515R2, "Education Tax Credit." These documents are available on the Canada Revenue Agency website at http://www.cra.gc.ca
We note that there is no provision in the Act or in the Income Tax Regulations that requires an educational institution to issue a T2202A slip. However, to refuse to issue a T2202A would restrict the ability of the student (or other eligible individual who supported the student) to properly calculate his or her income tax liability for that particular year. Accordingly, in our view it would be inappropriate for an institution to withhold a slip for a particular year when the tuition has been paid in respect of that year.
We trust that these comments will be of assistance.
Roxane Brazeau-LeBlond, C.A.
Financial Industries Division
Income Tax Rulings Directorate
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