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 the XXXXXXXXXX , is considered a post-secondary educational institution in Canada for purposes of subsection 118.5(1)(a).
Position: Yes.
Reasons: See Rulings file # 1-982624 and 3-982624.
November 17, 1998
Mike Pastuch HEADQUARTERS
Manager G. Moore
Validation Section 952-1506
Special Processing Division
7-982865
XXXXXXXXXX - Paragraph 118.5(1)(a) of the Income Tax Act
We are writing in reply to your memo of November 3, 1998, in which you asked for our opinion concerning whether the XXXXXXXXXX would be considered a post-secondary educational institution in Canada for purposes of paragraph 118.5(1)(a) of the Income Tax Act (the "Act").
XXXXXXXXXX
It is our understanding that private post-secondary educational institutions in British Columbia are governed by the Private Post-Secondary Education Act and are required to be registered with the Private Post-Secondary Education Commission (the "Commission"). Beginning in 1995, private post-secondary educational institutions in British Columbia also have the option of becoming accredited by the Commission. Through accreditation, registered institutions and their programs are evaluated and recognized for their standards of integrity and educational competence. Accreditation is a voluntary process by which a registered institution seeks recognition of its standards of integrity and educational competence. Through the accreditation process, the institution and its programs are evaluated and recognized for quality assurance and the institution is issued an accreditation certificate by the Commission which remains valid for five years. Any educational institution registered with the Commission, and which has been in operation for at least one year, may apply for accreditation. However, registered institutions are under no obligation to participate in the accreditation process, nor do they need to be accredited in order to conduct their educational activities in British Columbia. Pursuant to subsection 5(1) of the Private Post-Secondary Education Act, "an institution must not provide or offer to provide post-secondary education unless it is registered."
As you know, subparagraph 118.5(1)(a)(i) of the Act states that "for the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted (a) 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 institution providing courses at a post-secondary school level, or...". The terms "educational institution in Canada" or "educational institution providing courses at a post-secondary school level" are not defined terms in the Income Tax Act.
Paragraph 3 of IT-516R2, Tuition Tax Credit, indicates that there is no all-inclusive list of universities, colleges or other educational institutions in Canada providing courses at a post-secondary level. Paragraph 3 suggests some assumptions and interpretations that are normally applied in determining eligibility of an institution for purposes of subparagraph 118.5(1)(a)(i) of the Act; however, these are only general guidelines. In addition, paragraph 5 of IT-516R2 states that an institution listed in the current edition of Accredited Institutions of Postsecondary Education published by the American Council on Education and indicated in that publication as being an institution granting degrees at the "B" level (bachelor's degree or equivalent), "M" level (master's degree or equivalent), "D" level (doctoral degree) or "P" level (first professional degree) will be regarded as a university that qualifies under paragraph 118.5(1)(b) of the Act. While we generally agree with this comment, this does not preclude the branch of such a foreign university which is operating a campus in Canada fromowever, HHh otherwise qualifying as a educational institution in Canada, pursuant to paragraph 118.5(1)(a) of the Act.
XXXXXXXXXX
If the XXXXXXXXXX has registered with the Private Post-Secondary Education Commission and has complied with the Private Post-secondary Education Act of British Columbia, such that it may provide or offer to provide post-secondary education in British Columbia, we would consider the XXXXXXXXXX to be an educational institution in Canada that provides courses at a post-secondary school level for purposes of paragraph 118.5(1)(a) of the Act.
For your information a copy of this memorandum will be severed using the Access to Information Act criteria and placed in the Legislation Access Database (LAD) on the Department's mainframe computer. A severed copy will also be distributed to the commercial tax publishers for inclusion in their databases. The severing process will remove all material that is not subject to disclosure including information that could disclose the identity of the taxpayer. Should your client request a copy of this memorandum, they can be provided with the LAD version or they may request a copy severed using the Privacy Act criteria which does not remove client identity. Requests for this latter version should be made by you to Jackie Page at 613 957-0682. The severed copy will be sent to you for delivery to the client.
We trust our reply will be of assistance in this matter.
J. Wilson
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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