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.
Dear Sirs:
This is in reply to your letter of September 17, 1990 concerning the deductibility of the Goods and Services Tax ("GST") portion of tuition fees.
Under subsection 12(1) of Bill C-62, which amends the Excise Tax Act among others, as passed by the House of Commons on April 10, 1990, the GST is imposed on recipients of taxable supplies at a rate equal to 7% of the value of the consideration for the supply. Taxable supply is defined as a supply that is made in the course of commercial activity but does not include an exempt supply. An exempt supply means a supply included in Schedule V to the Excise Tax Act, as amended by Bill C-62. Educational services are included in Part III of Schedule V.
As GST is not imposed on tuition fees, there is no GST inclusion in the calculation of the tuition tax credit under section 118.5 of the Income Tax Act.
We trust these comments will prove helpful.
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1990
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1990
Email this Content