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 Income Tax Rulings Directorate recognizes the Kandasamy decision regarding the eligibility of medical residents for the education and textbook tax credits.
Position: Yes
Reasons: Previous position in F 2014-0551931E5
August 24, 2015
Ms. Agnes Migneault Income Tax Rulings
Canada Revenue Agency Directorate
Appeals Branch, Headquarters Randa El-Kadi
250 Albert Street, 13th floor (613) 670-9054
Ottawa ON K1A 0L5
2015-059205
Education and textbook tax credits medical residents
Dear Ms. Migneault:
We are writing in response to your email of June 16, 2015, in which you ask us to clarify our position regarding the eligibility of medical residents for the education and textbook tax credits, in light of the decision of the Tax Court of Canada in Kandasamy et al v. The Queen, 2014 TCC 47.
Our comments
Briefly, the question in the Kandasamy case was whether the taxpayers, who were medical residents, were eligible to claim the education tax credit as well as the post-secondary textbook credit pursuant to subsections 118.6(2) and 118.6(2.1) of the Income Tax Act, as full-time students enrolled in a "qualifying educational program" at a "designated educational institution" (as these terms are defined in subsection 118.6(1) of the Act).
Based on the decision in Kandasamy, medical residents may be eligible for the education and textbook tax credits. This position applies to medical residents in situations that are similar or identical to that in the Kandasamy case, and will apply on a prospective basis to the 2014 (the year of the decision) and subsequent tax years.
To be able to claim the education and textbook tax credits, medical residents must have a valid Form T2202A, Tuition, Education, and Textbook Amounts Certificate. A designated educational institution should only issue Form T2202A where the institution satisfies itself that its medical residency program meets the definition of a qualifying educational program (or a specified educational program) and that medical residents in the program are enrolled as full-time students (or part-time students).
We trust that these comments will be of assistance.
Yours truly,
Pamela Burnley, CPA, CA
Manager - Tax Credits and Ministerial Issues
Business and Employment Division
Income Tax Rulings Directorate
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