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 fees incurred by members who take the professional examination to obtain the Certified Human Resources Professional designation in Alberta would qualify for the tuition tax credit under 118.5(1)(d).
Position: No
Reasons: The examination is not required to obtain a professional status under federal or provincial statute.
XXXXXXXXXX
2013-049067
E. Wirag
(613) 957-2090
September 27, 2013
Dear XXXXXXXXXX,
We are replying to your email of May 27, 2013 in which you asked for our comments regarding the tuition tax credit. Specifically you asked if fees incurred by individuals who take the professional examination to obtain the Certified Human Resources Professional designation through the Human Resources Institute of Alberta are eligible for the tuition tax credit.
Written confirmations of the tax implications inherent in particular transactions are 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 Ruling", dated May 17, 2002. This Information Circular and other CRA publications can be accessed on the internet at http://www.cra-arc.gc.ca/formspubs/menu-e.html. Notwithstanding the foregoing, we are prepared to provide the following comments that may be of assistance.
Paragraph 2.40 of the Income Tax Folio S1-F2-C2: Tuition Tax Credit provides general information regarding eligibility requirements related to licensing examination fees. This folio is available at: http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s1/f2/s1-f2-c2-eng.html.
Subsection 118.5(1)(d) of the Income Tax Act (the "Act") states that in order for an occupation, trade or professional examination fee to be eligible for the tuition credit, a number of criteria must be met including that the examination "is required to obtain a professional status recognized under a federal or provincial statute". In our telephone discussion on August 27, 2013 (XXXXXXXXXX/Wirag), you confirmed that the examination to obtain the Certified Human Resources Professional designation in Alberta is not currently required under federal or provincial statute.
Based on the information provided, it is our view that the examination fees incurred to obtain the Certified Human Resources Professional designation would not qualify for the purposes of paragraph 118.5(1)(d) of the Act.
We hope this information is of assistance to you.
Yours truly,
Sharmini Ratnasingham
For Director
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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