25 October 1994 Internal T.I. 9423697 - 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.

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:

Would tuition fees paid to private schools for advance level courses qualify for the tuition tax credit pursuant to subparagraph 118.5(1)(a)?

Position TAKEN:

Question of fact.

Reasons FOR POSITION TAKEN:

I contacted XXXXXXXXXX Taxation Centre. They originally disallowed the claim because the school was not an educational institution pursuant to subparagraph 118.5(1)(a)(ii) as opposed to whether or not the course was at a post-secondary school level. This was not investigated. Thus, if the schools can provide independent documentation that the course would be acceptable for credit at a university or college then the tuition fees for the course would qualify given that they exceed $100.

						October 25, 1994

	XXXXXXXXXX District Office	HEAD OFFICE
	Client Assistance			Rulings Directorate
D. Zion
(613) 957-8953
	Attention: XXXXXXXXXX

						942369

Re: Subparagraph 118.5(1)(a)(i) of the Income Tax Act (the "Act")

This is in reply to your correspondence of September 13, 1994 regarding whether tuition fees paid to certain private schools would qualify for a deduction pursuant to the above-noted section.

More specifically, you have advised us that

XXXXXXXXXX are advising their students that fees paid in respect of certain "Advanced Level Courses" ("ALC's") are eligible under subparagraph 118.5(1)(a)(i) of the Act for deduction as a tax credit. XXXXXXXXXX Taxation Centre is of the view that these ALC's are not post-secondary school level courses, but rather preparation courses.

Our Comments

Based on the information you provided us in your correspondence we contacted XXXXXXXXXX Taxation Centre to determine on what basis the tuition fees paid for the ALC was disallowed. We were advised that the claim was disallowed on the basis that the school in question was not a certified educational institution pursuant to subparagraph 118.5(1)(a)(ii) of the Act.

However, it is our understanding that the provision under which the client has made the claim for the tuition tax credit is subparagraph 118.5(1)(a)(i) of the Act which allows a deduction as a tuition credit that portion of the tuition fees that relates to courses at the post-secondary school level where the tuition fees exceed $100 to a student enrolled at an educational institution in Canada that is a university, college or other educational institution providing courses at a post-secondary school level.

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, bona fide courses offered at a post-secondary level. However, we offer the following general comments which should be of assistance.

Should the schools in question 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 student taking the qualifying course would be entitled to the tuition tax credit for the course tuition fees provided that the total fees exceed $100.

It is our view that the school must actually provide a "course" i.e., a series of lectures or lessons, not just the administration of an exempting examination. In addition, the fact that the student, after completing the course must first successfully complete an accreditation or advanced placement examination would not disqualify the course from being considered at a post-secondary school level assuming that there is independent documentation that it is acceptable for credit as previously discussed.

We trust our comments will be of assistance.

P.D. Fuoco
Section Chief
Personal and General Section
Business and General Division
Rulings Directorate
Policy and Legislation Branch