16 October 1996 Ministerial Letter 9628228 - TUTORING SERVICES

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.

MINISTER/DEPUTY MINISTER'S OFFICE			96-05870M
ADM'S OFFICE
RETURN TO 15TH FLOOR, ALBION TOWER

October 16, 1996

XXXXXXXXXX

Dear XXXXXXXXXX:

Thank you for your letter of August 14, 1996, on behalf of your constituent, XXXXXXXXXX.

I have reviewed your concerns regarding the deductibility of fees paid by XXXXXXXXXX for tutoring services under the current provisions of the Income Tax Act. Paragraph 118.5(1)(a) of the Act describes the types of educational institutions in Canada whose tuition fees may be eligible for the tuition tax credit. These are limited to a university, college or other educational institutions providing courses at a post-secondary school level. Thus, the present structure of the Act provides no tax assistance for tuition fees paid for any elementary or secondary education, including fees for private schools or tutoring.

Another qualifying educational institution under the Act is one certified by the Minister of Human Resources Development Canada (certified educational institution) 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. Tuition fees paid to a certified educational institution qualify for the tuition tax credit if the student is sixteen years of age or older at the end of the year and the purpose of the student's enrolment in the course is to provide the student with skills, or improve the student's skills, in an occupation. The age limitation was added in 1992 because sixteen years is considered, in most cases, to be a reasonable and traditional age for job training to commence.

Consequently, fees paid to a tutor, or for tutoring services, such as those provided by XXXXXXXXXX do not qualify for the tuition tax credit under the current legislative regime, regardless of whether the organization is a certified educational institution, because of the age requirement and the fact that the courses do not improve occupational skills. For a more detailed explanation of the foregoing and the tuition tax credit, I am enclosing a copy of Interpretation Bulletin IT-516R, "Tuition Tax Credit."

In order to provide tax assistance to parents for fees paid for tutoring services like those offered by XXXXXXXXXX an amendment to the Act would be necessary. As amendments to the Act relate to tax policy, which is the responsibility of my colleague, the Honourable Paul Martin, Minister of Finance, I have forwarded a copy of your letter to him for his consideration.

I thank you for bringing this matter to my attention and I trust that this information will assist you in replying to your constituent.

							Yours sincerely, 

							Jane Stewart, P.C., M.P. 

C.C. The Honourable Paul Martin, P.C., M.P.

Minister of Finance

D.Zion
September 4, 1996
957-2140
962822