13 August 1997 Income Tax Severed Letter 7M1608 - Tuition tax credit — private tutoring

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.

SUMMARY: Tuition tax credit - private tutoring—ITA-118.5(1)(a)—Whether a tuition tax credit is available for private tutoring.

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.

PRINCIPAL ISSUES:

Tuition Tax credit for tutoring services

POSITION:

not eligible

REASONS:

The law provides no tax assistance for elementary or secondary education, including fees paid for private schools or tutoring

MINISTER/DEPUTY MINISTER'S OFFICE 97-03877M ADM'S OFFICE RETURN TO 15TH FLOOR, ALBION TOWER

August 13, 1997

XXXXXXXXXX

Dear XXXXXXXXXX

I am writing in response to your letter of May 29, 1997, addressed to my predecessor, the Honourable Jane Stewart, former Minister of National Revenue, on behalf of XXXXXXXXXX, which provides educational services for students in the XXXXXXXXXX area.

I would like to explain that XXXXXXXXXX cannot issue income tax receipts that would qualify for the tuition tax credit under the Income Tax Act, because the fees paid to a tutor, or for tutoring services, do not meet the criteria of the current legislative provisions.

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 universities, colleges or other educational institutions providing courses at a post-secondary school level. Thus, no tax assistance is available for elementary or secondary education, including fees paid for private schools or tutoring.

Educational institutions that are certified by the Minister of Human Resources Development also qualify if the institution provides courses, other than courses designed for university credit, that furnish a person with skills for, or improve a person's skills in, an occupation. To qualify for the tuition tax credit, the student must be 16 years of age or older at the end of year and demonstrate that enrolment in the course is to provide the student with skills, or improve the student's skills, in an occupation.

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, even if it 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 have enclosed a copy of interpretation bulletin, IT-516R, Tuition Tax Credit.

In order for parents to be able to get the tax assistance for fees paid to entities such as XXXXXXXXXX, an amendment to the Act would be necessary. Since amendments to the Act relate to tax policy, which is the responsibility of my colleague, the Honourable Paul Martin, a copy of our earlier response to XXXXXXXXXX was sent to Mr. Martin.

I trust my comments have addressed your concerns.

Yours sincerely, Herb Dhaliwal, P.C., M.P.

John Oulton 957-2141 July 4, 1997