25 October 1994 External T.I. 9423635 - 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:

XXXXXXXXXX school board has submitted list of courses which they think meet the criteria as generally discussed in previous response. Want confirmation as to whether income tax receipts should be issued for fees paid for these courses.

Position TAKEN:

Unable to confirm with certainty. But it is doubtful, given the information provided. Could meet criteria for deduction as a business expense for certain individuals or companies.

Reasons FOR POSITION TAKEN:

The courses do not appear to be at the post-secondary level such that they would be acceptable for credit at a university or college.

								942363
XXXXXXXXXX									D. Zion

Attention: XXXXXXXXXX

October 25, 1994

Dear XXXXXXXXXX:

Re: Tax Receipts for Continuing Education Fees

This is in reply to your letter of September 7, 1994 in which, further to our letter of August 2, 1994, you have provided a list of courses which in your opinion satisfy the criteria outlined in our previous response.

The following comments are intended to confirm the September 16, 1994 telephone conversation (Zion/XXXXXXXXXX) regarding the eligibility, for the tuition tax credit, of fees paid for the continuing education courses listed in the letter of September 7, 1994.

As previously stated, where an educational institution provides bona fide courses at the post-secondary level then the tuition fees for these courses would be eligible for the tuition tax credit. Whether any particular course is at a post-secondary school level is a question of fact. Without complete details of the content and enrolment of the courses, we cannot confirm whether any of the courses in question are, in fact, a course offered at a post-secondary level. However, from our review of the limited documentation that accompanied your original letter and your more current enquiry, we are of the view that the courses submitted would probably not qualify as post-secondary level courses. Generally, we consider a course at a post-secondary level to be one in which the successful completion of the course would give the student a credit for that course at a Canadian university or college.

Should the Board be able to provide independent documentation to evidence that any of its courses are acceptable for credit at a Canadian university or college, then the taxpayer would be entitled to the tuition tax credit in the applicable taxation year for the qualifying course.

In addition, it is possible that individuals who are carrying on a business or profession may be entitled to deduct from the income of such a business, the fees paid for courses necessary to update or maintain their skills or profession. This is discussed in further detail in the Interpretation Bulletin IT-357R Expenses of Training, which was enclosed with our previous response. Qualifying fees in these cases would not be eligible for the tuition tax credit but rather would be deductible pursuant to subsection 18(1) of the Income Tax Act.

We trust that this clarifies our position.

Yours truly,

P.D. Fuoco
for Director
Business and General Division
Rulings Directorate
Policy and Legislation Branch