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.
912787
Dear 19(1):
We are writing in reply to your letter of October 2, 1991, wherein you requested our views on the meaning of the word "enrolled" in the context of paragraph 118.5(1)(a) of the Income Tax Act (the Act) as it relates to the following situation:
A college situated in Canada, charges an application fee of $400. This fee is retained by the college if the student is accepted into the college or the student decides not to attend the college. In this regard you have requested our views as to whether or not this fee would be eligible for the tuition tax credit under paragraph 118.5(1)(a) of the Act.
Our Comments
The term "enrolled" is not defined in the Act and should, therefore, be given its ordinary meaning in applying paragraph 118.5(1)(a) of the Act. Webster's Ninth New Collegiate Dictionary defines enrol as "to insert, register or enter in a list, catalogue, or roll ... to enrol oneself or cause oneself to be enrolled."
In the context of enrolment of a student at an educational institution for purposes of paragraph 118.5(1)(a) of the Act, it is our opinion that the student should be registered with the registrar of the institution such that the student would be contractually liable for any tuition fees required to be paid to the institution with respect to the chosen course of study.
Since paragraph 118.5(1)(a) of the Act requires the individual to be enrolled in the institution and the fees must be for tuition in respect of the year, it is our opinion that the $400 fee would not qualify as a tuition fee in the situation where a student, although accepted by the institution, decides not to attend the institution. Should the individual become registered in the institution, the non-refundable application fee of $400 would qualify for the tuition tax credit pursuant to paragraph 118.5(1)(a) of the Act (see paragraph 26 of IT-516).
We trust our comments will be of assistance to you.
Yours truly,
P.D. Fuoco for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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, 1991
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, 1991
Email this Content