8 April 1993 Internal T.I. 9307377 F - Tuition Fees

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.

XXXXXXXXXX

Attention:  XXXXXXXXXX

Dear Sirs:

RE:  Tuition Tax Credit

This is in reply to your facsimile of March 12, 1993 in which you asked us whether tuition fees paid to the XXXXXXXXXX by students in respect of certain courses are eligible for the tuition tax credit.

You have indicated that the College offers academic upgrading so that students may obtain the equivalent to a high school diploma. With respect to these courses, the College has not issued T2202A forms on the basis that the students are not enrolled in post-secondary courses. However, since another college has indicated that your interpretation is incorrect, you have asked us to clarify this matter.

Our Comments:

The problem you have raised concerns paragraph 118.5(1)(a) of the Income Tax Act.

There are two broad categories of educational institutions in Canada that are described in paragraph 118.5(1)(a) of the Income Tax Act. The first category includes certain universities, colleges, and other educational institutions. The second category includes educational institutions that are certified by the Minister of Employment and Immigration to be an educational institution providing courses that furnish a student with skills for, or improve a student's skills in, an occupation. In view of the information you provided, our comments on the tuition tax credit relates to the former type of educational institution.

In the case of courses that are not at a post secondary level, it seems that some confusion has arisen as to whether the related tuition fees are eligible for the tuition tax credit as a consequence of a proposed legislative amendment that applies to 1992 and subsequent years.

For years prior to 1992, one of the requirements in paragraph 118.5(1)(a) is that a student must have been enrolled at an educational institution in Canada that is a university, college or other educational institution providing courses at a post secondary level. However, with respect to such a year, paragraph 118.5(1)(a) does not require that the student actually be enrolled in post secondary courses at the educational institution. Accordingly, on the basis that the College provides courses at a post secondary level, tuition fees paid to the College by a student who was enrolled in respect of academic upgrading would not be disqualified from the tuition tax credit for a year prior to 1992 on the basis that the courses involved were not of a post secondary level.

However, as a consequence of the proposed legislative change referred to above, a student enrolled at a university, college, or other educational institution in Canada will not be entitled to claim the tuition tax credit for 1992 and subsequent years in respect of the related tuition fees where the fees are paid in respect of courses that are not of a post secondary level. Accordingly, for 1992 and subsequent years the tuition tax credit cannot be claimed by a student in respect of the related fees paid to the College for the academic upgrading described in your correspondence.

For your further information, we note that it is expected that the proposed legislative change will be enacted into law in the near future.

We trust that the foregoing comments will be of assistance to you.

Yours truly,

for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch