19 October 1989 Income Tax Severed Letter RCT 5-8397

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.

Dear Sir:

This is in reply to your letter of July 14, 1989 inquiring as to the eligibility of tuition costs incurred during flight training for purposes of calculating the tuition tax credit under the Income Tax Act (the "Act").

Under subparagraph 118.5(1)(a)(ii) of the Act, there may be included, in calculating the amount deductible from an individual's tax payable, the amount of any fees for his or her tuition paid to certain educational institutions. The eligible institutions are those in Canada that have been certified by the Minister of Employment and Immigration as providing courses that furnish a person with skills for, or improve a person's skills in, an occupation. The fees included in calculating the tuition tax credit must be allocated on a calendar year basis; that is, the portion of any fees paid in one year which are in respect of the following year can only be included in calculating the following year's tuition tax credit. The total of such fees in any one year must exceed $100. Furthermore, the student must be enrolled in the institution for the purpose of obtaining or improving his or her skills in an occupation. To be eligible, the fees must not have been paid on the student's behalf by his or her employer (unless they were included in the individual's income).

With particular reference to flight instruction tuition, fees are only eligible for calculating the tax credit where the individual is taking flying lessons in order to become a commercial pilot or professional instructor. The individual must be under instruction and direct supervision for the fees to be considered as tuition. The cost of dual and solo flying time, up to the minimum flight training requirements of your Department to obtain a Private Pilot's Licence or Commercial Pilot's Licence, is considered to be tuition. It is our understanding that the current minimum requirements for a Commercial Pilot's Licence consist of a Private Pilot's Licence, 65 hours of flying time under instruction and a total of 200 hours of flight experience. The flying time under instruction includes both dual and solo flights, which consist of a formal lesson plan and a report to the instructor upon completion of the flight. It is our view, therefore, that the cost of both dual and solo flying time while under instruction should be considered as an eligible tuition cost. In contrast, the cost of flying time while not under instruction is not to be so considered even though the fees were paid to a qualifying educational institution.

Ground school and flight simulator fees are eligible but costs incurred by an individual flying a personal aircraft while taking a course at a flying training school or club are not eligible.

A certificate (form TL11B) must be submitted with an individual's tax return when claiming eligible tuition fees.

We trust the above is of assistance to you. For your further information, we have enclosed a copy of Interpretation Bulletin IT-516 and would refer you in particular to paragraphs 29 and 32.