20 June 1994 External T.I. 9404865 - TUITION FEES TO MEDICAL COUNCIL OF CANADA

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.

Principal Issues:

whether fees paid to the Medical Council of Canada and/or the Educational Commission for Foreign Medical Graduates (Pennsylvania) qualify for the tuition tax credit

Position TAKEN:

neither qualify

Reasons FOR POSITION TAKEN:

fees are not in respect of "tuition" but are simply examination fees (not forming an integral part of a course of study). Even if fees paid to the Education Commission for Foreign Medical Graduates could qualify as "tuition", the fees paid would not qualify as the Commission is not recognized as a University in the "American Universities and Colleges" 13th edition nor is it listed in Schedule VIII of the Regulations nor would the spouse have met the full-time attendance criterion.

		940486
XXXXXXXXXXSandra Short

June 20, 1994

Dear XXXXXXXXXX:

Re: Examination Fees paid to the Medical Council of Canada and the Educational Commission for Foreign Medical Graduates

This is in reply to your letter of February 21, 1994 addressed to the XXXXXXXXXX concerning the deductibility of examination fees paid to the Medical Council of Canada and the Educational Commission for Foreign Medical Graduates (based in Philadelphia, Pennsylvania). Your correspondence was forwarded to this office for a reply. We apologize for the delay.

Your correspondence states that the fees relate to "medical evaluation examinations" written by your spouse, XXXXXXXXXX She has taken the examinations to improve her medical (professional) knowledge and to increase her English language skills. We understand that these amounts were not allowed in the assessment of your 1992 income tax return. It is your view that these amounts should be deductible in the same way that pilots can deduct the costs of tuition paid to flying schools. You have indicated that you are aware that the Medical Council of Canada is not an institution certified by the Minister of Employment and Immigration. Because you have requested that the fees paid in respect of your spouse's examinations be allowed as a credit on your tax return, we have assumed that your spouse is able to transfer her unused tax credits for the year to you.

It is our opinion that examination fees paid to the Medical Council of Canada or to the Education Commission for Foreign Medical Graduates would not qualify as "tuition" fees for the purposes of the Income Tax Act. Examination fees may only qualify as "tuition" fees if the examinations form an integral part of a course of study. The word "tuition" is not defined in the Income Tax Act and must, therefore, be accorded its ordinary meaning. Wester's Seventh New Collegiate Dictionary defines "tuition" as "the act or profession of teaching" , "instruction" and "the price of or payment for instruction".

We note that in correspondence dated December 18, 1992 and addressed to your spouse from the Medical Council of Canada that a cautionary statement is made to point out that acceptance to the Evaluating Examination does not guarantee acceptance for licensure in any of Canada's provinces. The 1993 Directory of Associations in Canada states that the purpose of The Medical Council of Canada is "to conduct examinations testing medical competence and leading to qualification for licensure by the provincial medical councils or colleges". It is our view that the fees are paid for the purposes of being examined with respect to qualification for licensure rather than being an integral part of a course of studies or instruction. It follows that the fees would not qualify for the tuition tax credit.

Similarly, where a pilot is required to pay an examination fee that is not an integral part of a course of study, that is, not a fee for instruction, no amount of the examination fee may qualify for purposes of the tuition tax credit. It is the Department's view that only those pilots enrolled as students in a flying school or club in Canada certified by the Minister of Employment and Immigration Canada may claim those fees paid for "tuition", that is, fees for instruction. Thus, even where an institution is certified by Employment and Immigration Canada, the fees in question must qualify as "tuition".

We would also add that examination fees paid to the Educational Commission for Foreign Medical Graduates (which is located in the United States) would not qualify for tuition tax credit purposes even if the fees could be considered to be in respect of "tuition". Generally speaking, where fees are paid to an educational institution outside Canada, only a student in full-time attendance at a university outside Canada in a course leading to a degree may claim the tuition tax credit. The Educational Commission for Foreign Medical Graduates is not recognized as a University in the "American Universities and Colleges" publication (13th edition) nor is it listed in Schedule VIII (Universities Outside Canada) of the Income Tax Regulations. It would not appear that your spouse would have met the full-time attendance criterion in any case.

We trust the above comments are of assistance to you.

Yours truly,

P.D. Fuoco
for Director
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch