5 July 1989 Income Tax Severed Letter 7-3885

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.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Enquiries and Taxpayer                     Small Business
Assistance Division                          and General Division
P. McNally, Director                         J.A. Szeszychi
L. Pulcine                                   7-3885

July 5, 1989

Subject: Tuition Tax Credit Commercial Pilot's Credit

We are responding to your memorandum of May 3, 1989 in which you requested clarification as to the extent to which amounts paid in respect of dual and solo flying hours constitute eligible tuition fees for the purposes of the tuition tax credit. Enclosed with your memorandum was a copy of a newspaper article published in December, 1988 which clearly stated that in the commercial pilot course costs in respect of 60 hours of flying training (30 dual and 30 solo) would be included as eligible tuition fees.

The Department's position as expressed in paragraph 29 of IT-516 is that in order for the cost of flying time to be eligible for the tuition tax credit, the student must be under instruction and direct supervision. It is our understanding that the current minimum requirements for a Commercial Pilot's Licence consists of a Private Pilot's Licence, 65 hours of flying time under instruction and a total of 200 hours of flight experience. The flying time under instruction includes both dual and solo flights, which consist of a formal lesson plan and a report to the instructor upon completion of the flight. It is our view, therefore, that the cost of both dual and solo flying time while under instruction should be considered as an eligible tuition cost. In contrast, the cost of flying time while not under instruction is not to be so considered even though the fees were paid to a qualifying educational institution.

Director
Small Business and General Division
Specialty Rulings Directorate
Legislative and Intergovernmental
Affairs Branch

• c. c R. Shultis, Publications Division