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: Is a letter of certification still a valid receipt for tuition tax credit purposes?
Position: Yes.
Reasons: Where an educational institution that is certified by the Minister of Human Resources and Social Development Canada (within the meaning of subparagraph 118.5(1)(a)(ii) of the Income Tax Act) does not use Form T2202A, a letter of certification in the format set out in IT-516R2 should be issued to the student.
XXXXXXXXXX 2007-023752
June 22, 2007
Dear XXXXXXXXXX:
This is in response to your letter of May 22, 2007 and our subsequent telephone conversations (XXXXXXXXXX/Maley) pertaining to official tax receipts for tuition tax credit purposes. In this regard, you have advised that your organization issues to each of its students a letter of certification in the format set out in the Canada Revenue Agency (CRA) Interpretation Bulletin IT-516R2 "Tuition Tax Credits". You have asked for confirmation that this format of certification is still acceptable to the CRA. You have also asked whether, in addition to providing letters of certification to your students, you should be providing copies of the letters you have issued directly to the CRA.
As discussed, Form T2202A or an official income tax receipt is the appropriate certification to issue to students for tuition fees paid. In circumstances where an educational institution that is certified by the Minister of Human Resources and Social Development Canada (within the meaning of subparagraph 118.5(1)(a)(ii) of the Income Tax Act) does not use Form T2202A, a letter of certification in the format set out in IT-516R2 should be issued to the student. There is no requirement for an educational institution to provide copies of Form T2202A or official income tax receipts for tuition directly to the CRA. However, students who claim a tuition tax credit on their T1 return must be able to provide a copy of the document, should we request it. We may also request the student to provide proof that they are working towards an occupation, or improving their skills in an occupation, by taking the course.
In closing, we note that the letter of certification is not sufficient to entitle a student to claim the education tax credit, which is available separately from the tuition tax credit and for which a T2202 or T2202A is required.
Sincerely,
Robin Maley
For Director
Financial Sector and Exempt Entities Division
Income Tax Rulings and Interpretations Directorate
Legislative Policy and Regulatory Affairs Branch
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