2 August 1994 External T.I. 9409885 - TAX RECEIPTS FOR CONTINUING EDUCATION FEES - TUITION

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 income tax receipts should be issued for fees paid for courses offered by the Continuing Education Centre of local school board. Are they eligible tuition fees pursuant to 118.5(1)?

Position TAKEN:

Question of Fact. Not enough information provided.

Reasons FOR POSITION TAKEN:

Unable to determine if courses at a postsecondary level or if for eligible items.

		940988
XXXXXXXXXX	D. Zion

Attention: XXXXXXXXXX

August 2, 1994

Dear Sir/Madam:

Re: Tax Receipts for Continuing Education Fees

This is in reply to your letter of April 15, 1994 in which you request a ruling regarding whether income tax receipts should be issued to students who enrol in courses at your Continuing Education Centre. We apologize for the delay in responding.

As the situation briefly outlined in your correspondence involves completed transactions and the main issue is dependent on the facts of a specific case we are not in a position to give you a ruling nor a definitive response. We will however, provide the following general comments which may be of assistance to you.

Our Comments

In the comments that follow unless otherwise stated, all statute references are to the Income Tax Act S.C. 1970-71-72, c.63 as amended, consolidated to June 10, 1993 (the Act).

Subparagraph 118.5(1)(a) of the Act describes the types of educational institutions in Canada to which tuition fees paid may be eligible for the tuition tax credit. Included are universities, colleges or other educational institutions providing courses at a post-secondary school level. In addition, institutions certified by the Minister of Employment and Immigration to be an educational institution providing courses, other than courses designed for university credit, that furnish a person with skills for, or improve a person's skills in, an occupation also qualify. The total of these fees paid to an educational institution in Canada must exceed $100 in respect of the year to be eligible.

Whether any particular course is at a post-secondary school level is a question of fact that can only be determined by the educational institution providing the course. If a course is determined to be at the post-secondary level, the fees must be for items considered to be eligible tuition fees. We have enclosed for your information Interpretation Bulletin IT-516R, Tuition Tax Credit. Paragraph 27 of this publication contains a list of items that are considered eligible tuition fees. If a course meets the criteria as described above as well as the other requirements described in subparagraph 118.5(1)(a) of the Act then an income tax receipt in the form described in the same publication should be issued to the student.

In certain circumstances, individuals who are carrying on a business or profession may be entitled to a deduction in computing income from such a business, for courses necessary to update or maintain their skills or profession as explained in the enclosed Interpretation Bulletin IT-357R Expenses of Training. It should be noted that this deduction is not available to employees or in respect of courses which provide the individual with a new skill.

Should you feel that a specific course meets the necessary criteria and you require further assistance, we would invite you to provide all pertinent information and documentation to your local District Taxation Office.

Yours truly,

P.D. Fuoco

for Director
Business and General Division
Rulings Directorate
Policy and Legislation Branch