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 T4A slips should be issued to Indian students for education assistance provided under AANDC's PSSSP program.
Position: T4A slips are not required.
Reasons: The CRA has a longstanding position that T4A slips are not required for education assistance provided to an Indian from certain AANDC's programs.
March 19, 2014
XXXXXXXXXX
Dear XXXXXXXXXX:
I am replying to your question I received about issuing T4A slips for education assistance provided to your members.
I understand that XXXXXXXXXX is recognized as an Indian band and XXXXXXXXXX. The Band receives funding from the Post-Secondary Student Support Program of Aboriginal Affairs and Northern Development Canada (AANDC). The Band uses the funds to provide education assistance XXXXXXXXXX. You want to know if the Band needs to give T4A slips to its members receiving the education assistance.
You can find information about AANDC's Post-Secondary Student Support Program on its website at www.aadnc-aandc.gc.ca. The website explains that eligible students must be Indians, living on- or off-reserve, who are enrolled in a certificate, diploma, or degree program in an eligible post-secondary education institution. Assistance may be provided for tuition support, travel support, and living expenses. The term Indian is used by both AANDC and the Canada Revenue Agency (CRA) because the Indian Act gives it a specific legal meaning.
The CRA offers information on education assistance in "Information for Indians" on its website at www.cra.gc.ca/brgnls/stts-eng.html. Generally, the full amount a student received as scholarships, fellowships, or bursaries is not taxable and is not reported as income when the student is enrolled in a program that allows him or her to claim the full-time education tax credit. This applies to all individuals.
If an individual is an Indian who is not eligible for the full-time education tax credit, the scholarship, bursary, or fellowship may still be tax-exempt if it came from AANDC (either directly or through a band) as part of AANDC's Post-Secondary Education Program. This means that amounts received from either the Post-Secondary Student Support Program or the University and College Entrance Preparation Program are treated as tax-exempt. There is currently no requirement to issue T4A slips for these amounts.
I can therefore confirm that T4A slips are not required for post-secondary education assistance received by an Indian under AANDC's Post-Secondary Student Support Program. This is true even if the Indian band does not have a reserve.
I trust the information I have provided is helpful.
Yours sincerely,
Kerry-Lynne D. Findlay, P.C., Q.C., M.P.
Janet Lew
(613) 957-2135
2014-052337
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