12 August 1991 External T.I. 912055 F - Tuition Tax Credit - Post Graduate Studies

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.

Subject: Tuition Tax Credit - Post Graduate Studies

This is in reply to your memorandum of July 22, 1991 in which you requested our views as to the eligibility of tuition fees in respect of a distance education Masters degree program for the tuition tax credit.  You attached to your memorandum a copy of a submission made to                19(1) 19(1)

24(1)   In order for tuition fees paid to a university outside Canada to qualify for the tuition tax credit, certain criteria as discussed in IT-516 must be met.  Upon review of the information submitted it is clear that the university is an accredited educational institution, that the program is no less than thirteen weeks in length and that it leads to a degree at its successful conclusion.  The only remaining criteria at issue is whether the student can be considered to be in full-time attendance at the university under the circumstances described.

It is evident from the program literature and the taxpayer's submission that the physical attendance requirements under the "open" program are limited to several weeks per year.  The nature of the program in question includes the application of advanced business management theory to the student's own work environment.  As a consequence, full-time employment is almost essential for a successful study program.  In addition to the limited attendance requirements the literature describes the availability of tutors who may be accessed by telephone when the student is not in actual attendance at the university.  It further describes a computer conferencing feature which allows the "distant" student to participate and interact with other students in the program.  While assignments are submitted by correspondence the program does not have all the usual characteristics of a correspondence course.

Over the years, the courts have dealt with the issue of full-time attendance through which two key principles have been established; first, a full-time job does not preclude concurrent full-time attendance as a student [E.A. Hunt v. M.N.R. 77 DTC 79] and second, a post-graduate program should be distinguished from an undergraduate program where regular physical attendance is a requirements [Creaves v. M.N.R. 78 DTC 1017 and Sweeney v. M.N.R. 78 DTC 1885] 

The latter cases led to be inclusion of comments in paragraphs 10 and 11 of IT-516 (formerly IT-82R3) that a student in post-graduate studies will be considered to be in full-time attendance if the educational institution being attended regards her/him as such and that a student participating in post-graduate studies on a regular basis would be considered in full-time attendance even though the requirement for attendance in the classroom is minimal.

Consequently, it is our view that any amount paid in respect of tuition for the subject program would be eligible for inclusion in the computation of the tuition tax credit.

In Mr.    19(1)  submission, brief reference was made to the education tax credit as well.  Under the definition of "qualifying educational program" contained in subsection 118.6(1) paragraph (b) excludes a program that is taken by a student during a period in which he is also receiving employment income and one that is taken in connection with that office or employment. 24(1)  In our view, therefore, Mr.   19(1) would not be entitled to a claim for the education tax credit.

P.D. FuocoChief, Personal and General SectionBusiness and General SectionRulings DirectorateLegislative and Intergovernmental Affairs Branch

c.c. P. McNally, Director, Enquiries and Taxpayer Assistance Division.