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.
Principal Issues: Are T4A slips required to be distributed to students receiving scholarships to primary and secondary schools?
Position: T4A slips are required to be issued irrespective of the taxability of the amount in the hands of the student.
Reasons: Reg. 200(2) requires all scholarship amounts to be reported in prescribed form.
XXXXXXXXXX
2010-038626
James KerrAttn: XXXXXXXXXX
December 13, 2010
Dear XXXXXXXXXX :
Re: Filing of T4As in respect of scholarships and bursaries
I am writing in response to your letter of October 28, 2010 concerning whether there is a need to issue T4As to students of a primary or secondary school who receive scholarships or bursaries. Furthermore, if the school is required to file T4As you would like to know how the recipients should report such income on their income tax returns.
Paragraph 56(1)(n) of the Income Tax Act (the "Act") requires that a taxpayer include in taxable income scholarship or bursary amounts in excess of certain exemptions found in subsection 56(3) of the Act. An amount received in respect of a scholarship or bursary in connection with the taxpayer's enrolment in an elementary or secondary school educational program is specifically excluded from income under subsection 56(3) of the Act.
Notwithstanding the fact that a scholarship or bursary may not be taxable to the recipient, subsection 200(2) of the Income Tax Regulations requires a T4A slip to be issued. According to Guide RC4157, Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary, scholarship and bursary amounts would go in an "Other information" box with the code 105.
We trust these comments will be of assistance.
Yours truly,
Randy Hewlett
Manager
For Director
Ontario Corporate Tax Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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