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: Would a student that was part time for a portion of a year and full time for the remaining portion, qualify for the Tuition Tax Credit?
Position: Depends
Reasons: CRA generally relies on the educational institution's determination as to whether the individual is registered as a full-time or part-time student if the method of classification is reasonable and consistent.
XXXXXXXXXX
2012-044218
George A. Robertson, CMA
November 30, 2012
Dear XXXXXXXXXX
Re: Tuition Tax Credit (TTC)
This is in response to your March 31, 2012 email requesting our views on the TTC. In the situation described the student was in part-time attendance for part of the year and full-time attendance for the remaining part of the year, at a University outside Canada.
Written confirmation of the tax implications inherent in particular transactions may only be provided by this Directorate where the transactions are proposed and are the subject matter of an advance income tax ruling submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Rulings, dated May 17, 2002. This Information Circular and other Canada Revenue Agency (CRA) publications can be accessed at www.cra-arc.gc.ca. Based on the limited information provided, we offer the following general comments:
Brochures, RC190, Information for Educational Institutions Outside Canada and RC192, Information for Students - Educational Institutions Outside Canada outline four conditions to be met for tuition fees to qualify and be recorded and certified on Form TL11A Tuition, Education, and Textbook Amounts Certificate - University Outside Canada. One of the conditions is "the student has to be in full-time attendance at a university outside Canada;"
The term "enrolled
as a full-time student" is not defined in the Income Tax Act. Paragraphs 10 and 11 of Interpretation Bulletin IT-516R2, Tuition Tax Credit make the following comments:
10. Students are ordinarily accepted as being in "full-time attendance" if the university regards them as such. Accordingly, a certificate from a university stating that a student was in full-time attendance in a particular academic year or semester will normally be accepted.
11. A student is not considered to be in full-time attendance at a university outside Canada if
(a) only a few subjects or evening classes are being taken,
(b) courses are taken only by correspondence, or
(c) although a day student, the student is carrying only a minor course load and at the same time devoting so much time and energy to other activities (such as money earning activities)that they are clearly the student's primary occupation.
However, a student holding a full-time job while taking a major course load is considered to be in full-time attendance, provided that the educational institution being attended regards the student as a full-time student.
The determination of whether a student is considered in full-time attendance at a university is a question of fact. The CRA generally relies on the educational institution's determination as to whether the individual is registered as a full-time or part-time student if the method of classification is reasonable and consistent. Students are ordinarily accepted as being in full-time attendance if the university regards them as such. Accordingly, a certificate from a university stating that a student was in full-time attendance in a particular academic year or semester will normally be accepted. All other criteria for the tuition tax credit must otherwise be fulfilled.
While we trust that these comments will be of assistance, they are given in accordance with the practice referred to in paragraph 22 of IC 70-6R5 and are not binding on the CRA in respect of any particular situation.
Yours truly,
Sharmini Ratnasingham
for Director
Business & Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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