17 September 1997 Internal T.I. 9711067 - 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:

Eligibility for the tuition tax credit and the education tax credit for fees paid to XXXXXXXXXX

Position:

Not eligible

Reasons:

The fees are paid to XXXXXXXXXX as agent for XXXXXXXXXX. Since the courses offered do not run for 13 consecutive weeks, the students are not eligible for the credits.

							September 17, 1997

	XXXXXXXXXX TAXATION CENTRE		HEADQUARTERS
	Enquiries & Adjustment Division	Financial Industries
							  Division
							971106

Tuition Fees - XXXXXXXXXX

This is in reply to your memorandum of April 18, 1997, wherein you requested our views as to whether tuition fees paid in the following situation would be eligible for the tuition tax credit pursuant to section 118.5 of the Income Tax Act (the "Act") and the education tax credit pursuant to section 118.6 of the Act:

XXXXXXXXXX

The issue is whether XXXXXXXXXX would be considered the "educational institution" for purposes of sections 118.5 and 118.6 of the Act. Subsection 118.5(1) of the Act sets out the circumstances under which a student may determine a tuition tax credit for tuition fees paid to educational institutions in and outside Canada. In order that fees payable to an educational institution outside Canada to be eligible for a tuition credit, under paragraph 118.5(1)(b) of the Act, the course must be of not less than 13 weeks in duration. Subsection 118.6(2) of the Act authorizes a student to claim an education tax credit. Under the provisions of subsection 118.6(1) of the Act, a "designated educational institution" means a university outside Canada at which the student is enrolled in a course of at least 13 consecutive weeks in duration. We note that if XXXXXXXXXX is considered the educational institution, the students would not meet the requirement under paragraph 118.5(1)(b) or subsection 118.6(1) of the Act as the course does not run for 13 consecutive weeks.

Based on the information that has been provided, it is our view that XXXXXXXXXX acts as agent on behalf of

XXXXXXXXXX

In this regard we note that XXXXXXXXXX has been certified as an educational institution by the Minister of Employment and Immigration to provide courses (other than courses designed for university credit) that furnish a student with skills for, or improve a student's skills in an occupation for purposes of subparagraph 118.5(1)(a)(ii) of the Act. Consequently, it appears that XXXXXXXXXX is not able to provide courses which lead to a graduate degree such as a Master of Science of Administration degree.

Consistent with the foregoing comments, it is our view that the students who paid fees to XXXXXXXXXX are not eligible for the tuition tax credit or for the education tax credit.

for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch