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 the proposed amendments to subsection 56(3) will apply to post-doctoral scholarships.
Position: Question of fact.
Reasons: The draft legislation requires that the award be received in connection with an individual's enrolment in an educational program for which the individual may claim the education tax credit.
September 28, 2006
XXXXXXXXXX
Dear XXXXXXXXXX:
I am replying to your correspondence addressed to the XXXXXXXXXX, regarding whether the 2006 Federal Budget proposal to exempt certain scholarships, fellowships or bursaries from income would apply to the post-doctoral fellowship that you will receive from XXXXXXXXXX.
You are concerned that the program for which you will receive your fellowship will not qualify for the education tax credit and that the proposed exemption will not apply to you.
On August 31, 2006, the Honourable James M. Flaherty, Minister of Finance, released legislative proposals to implement the remaining 2006 Federal Budget measures, including the proposal to exempt certain scholarships, fellowships or bursaries from income. The draft legislation indicates that the exemption will only apply if the award is received in connection with an individual's enrolment in an educational program for which the individual may claim the education tax credit.
The draft legislation for the 2006 Federal Budget proposals was released in draft form so that taxpayers would have an opportunity to consider and comment on them before they are introduced in Parliament. I will therefore forward a copy of this letter to the Honourable James M. Flaherty, for his consideration.
I appreciate the opportunity to respond to your letter.
Sincerely,
The Honourable Carol Skelton, P.C., M.P.
c.c.: The Honourable James M. Flaherty, P.C., M.P.
Minister of Finance
House of Commons
Ottawa ON K1A 0A6
Randy Hewlett
613-957-2049
2006-020410
September 8, 2006
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