24 April 1998 External T.I. 9804575 - EDUCATIONAL INST.

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 School of Homeopathy is an "educational institution" for purposes of tuition credits and whether fees paid for homeopathy consultations qualify as medical fees.

Position: Explained what constitutes an "educational institution" and what constitutes a medical expense.

Reasons: Limited information provided.

		980457
XXXXXXXXXX 	A.M. Brake
(613) 957-2133

Attention:  XXXXXXXXXX 

April 24, 1998

Dear Sirs:

Re: Educational Institution

This is in reply to your letter of February 19, 1998 requesting information relating to the deductibility of receipts by students for income tax purposes as well as the deductibility of payments for homeopathic consultations.

Section 118.5 of the Income Tax Act (the "Act") provides for a tuition tax credit where the individual was during the year a student enrolled at an educational institution in Canada that is,

(i) a university, college or other educational providing courses at post-secondary school level, or

(ii) certified by the Minister of Human Resources Development 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.

Should you wish to obtain information on certification requirements and procedures for purposes of subparagraph 118.5(1)(a)(ii) of the Act, your inquiries should be directed to:

Certification of Private Educational Institutions
Human Resources Development Canada
Phase IV, 4th Floor
Place du Portage
140 Promenade du Portage
Hull, Quebec, K1A 0J9

We are enclosing copies of Interpretation Bulletins IT-515R2 and IT-516R relating to the above matter.

With regard to the deductibility, for income tax purposes, of payments made for homeopathic consultations, we assume you are inquiring as to whether such payments qualify as medical expenses for income tax purposes. In this regard the Act generally describes a medical expense as an amount paid to a medical practitioner, dentist, or nurse or a public or licensed private hospital in respect of medical or dental services provided to a person. While the actual definition of medical expense describes various other payments for drugs, eye glasses, etc., it would seem that the payments to which you refer would have to be made in respect of medical or dental services paid to one of the above.

With respect to eligible medical expenses, we also make reference to paragraph 118.2(2)(e) of the Act which describes an amount paid for the care, or the care and training, at a school, institution or other place of the patient, who has been certified by an appropriately qualified person to be a person who, by reason of a physical or mental handicap, requires the equipment, facilities or personnel specially provided by that school, institution or other place for the care, or the care and training, of individuals suffering from the handicap suffered by the patient. However, we do not have sufficient information to make a definitive statement in relation to your situation and refer you to paragraph 30 of Interpretation Bulletin IT-519R2, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, copy enclosed.

We trust our comments will be of assistance to you.

Yours truly,

Jim Wilson
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
- 3 -

.../cont'd

- 1 -