Tardif
T.C.J.:
This
is
an
appeal
from
an
assessment
for
the
1994
taxation
year.
The
facts
can
be
very
simply
summarized;
they
are
moreover
admitted
by
both
parties.
The
appellant,
a
student,
first
obtained
a
student
loan
for
the
years
1992
and
1993.
A
review
revealed
that
the
Department
had
made
a
mistake
in
the
analysis
of
the
financial
data
in
the
appellant’s
file.
He
was
consequently
advised
that
he
was
entitled
to
a
bursary
rather
than
the
loan
he
had
already
received
for
the
years
1992
and
1993.
Following
the
revision,
the
appellant
was
informed
of
the
results
in
1993;
at
that
time
the
Department
agreed
to
reimburse
directly
the
financial
institution
which
had
advanced
the
funds
for
the
loan.
The
reimbursement
took
place
in
1994,
even
though
the
error
turned
up
by
the
review
was
acknowledged
in
1993;
furthermore,
the
financial
data
involved
concerned
the
years
1992
and
1993.
Those
are
essentially
the
facts
out
of
which
the
dispute
arose.
The
Department
maintains
that
the
bursary
must
be
taxed
in
the
year
of
payment,
which
is
1994.
For
his
part,
the
appellant
maintains
first
of
all
that
he
never
received
the
bursary
as
the
Department
made
a
direct
payment
to
the
financial
institution
which
had
advanced
the
funds;
moreover,
argues
the
appellant
—
and
this
is
the
main
basis
of
his
appeal
—,
the
bursary
should
be
attributed
to
the
1992
and
1993
taxation
years,
as
the
bursary
in
question
was
related
to
studies
undertaken
during
those
years.
While
one
can
have
a
great
deal
of
sympathy
for
the
appellant’s
position,
this
in
itself
is
not
sufficient
for
his
appeal
to
be
well-founded.
The
issue
is
very
simple.
To
which
taxation
year
does
the
amount
of
the
bursary
apply
or
is
it
to
be
attributed?
It
would
be
appropriate
to
cite
the
provisions
of
the
Act
concerning
scholarships,
which
are
to
be
found
in
paragraph
56(1)(n)
of
the
Income
Tax
Act
and
which
read
as
follows:
56(1)
Without
restricting
the
generality
of
section
3,
there
shall
be
included
in
computing
the
income
of
a
taxpayer
for
a
taxation
year,
n)
the
amount,
if
any,
by
which
(i)
the
total
of
all
amounts
(other
than
amounts
described
in
paragraph
(g),
amounts
received
in
the
course
of
business,
and
amounts
received
in
respect
of,
in
the
course
of
or
by
virtue
of
an
office
or
employment)
received
by
the
taxpayer
in
the
year,
each
of
which
is
an
amount
received
by
the
taxpayer
as
or
on
account
of
a
scholarship,
fellowship
or
bursary,
or
a
prize
for
achievement
in
a
field
of
endeavour
ordinarily
carried
on
by
the
taxpayer,
other
than
a
prescribed
prize,
exceeds
the
greater
of
$500
and
the
total
of
all
amounts
each
of
which
is
the
lesser
of
[My
emphasis.]
A
search
of
the
relevant
case
law
revealed
a
recent
ruling
on
this
issue
by
the
Honourable
Judge
O’Connor
of
this
Court
in
Ong
v.
R.
(Nov.
21,
1994,
Ottawa,
94-1003(IT),
also
reported
electronically
in
the
TaxPartner
infobase
as
C.A.
Ong
v.
The
Queen,
[1994]
E.T.C.
478,
and
in
summary
form
[sub
nom.
Ong
v.
Canada]
in
(1994),
[1995]
2
C.T.C.
2238
(T.C.C.).
In
that
decision
Judge
O’Connor
canvassed
the
existing
case
law.
Ong
illustrates
clearly
in
what
year
a
scholarship
is
to
be
taxed.
I
believe
it
would
be
useful
to
cite
an
excerpt
from
the
Honourable
Judge
O’Connor’s
judgment:
It
is
clear
that
the
monies
advanced
in
1990
were
by
way
of
a
loan
effected
through
the
Bank.
The
loan
amount
as
indicated
was
$3,270
and
was
not
subject
to
tax.
The
grant,
in
the
same
amount,
was
only
authorized
and
advanced,
albeit
directly
to
the
Bank,
in
1992.
The
Appellant
indicates
that,
because
she
was
totally
unaware
of
the
fact
the
grant
had
come
forward
in
1992,
it
in
essence
related
to
the
1990
taxation
year
when
the
application
for
financial
assistance
was
granted.
The
Court
cannot
accept
this
argument.
The
grant
was
made
in
1992.
It
was
applied
to
eliminate
the
loan
at
the
Bank
and
consequently,
cannot
be
considered
as
having
been
received
in
any
year
other
than
1992.
I
have
no
reason
not
to
concur
in
this
judgment,
which
clearly
establishes
the
year
in
which
a
scholarship
is
to
be
taxed.
Therefore,
the
appeal
is
dismissed.
Appeal
dismissed.
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