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.
J.D. Jones (613) 957-2104
AUG 10 1988
Dear Sirs:
Re: Treatment of Employer Paid Tuition Fees
This is in reply to your letters of April 30, 1988 and June 22, 1988 as well as our recent telephone conversations wherein you requested a technical interpretation as to the taxability of employer paid tuition fees on behalf of an employee to XXXX for enrolment in their Executive MBA Program.
The facts as provided by you may be summarized as follows:
XXXX
The taxability of these payments by the employer on behalf of the employee would be determined by the local District Taxation Office on a case-by-case basis having regard to all the facts and circumstances of each individual situation and as such we are not able to provide the technical interpretation requested.
As stated in paragraph 19 of the Department's Interpretation Bulletin IT-470R , where the course for which the fees were paid was undertaken on the employer's initiative and for the benefit of the employer rather than the employee, the amount paid by the employer is not considered to be a taxable benefit to the employee. It should be noted that the fact the course for which the fees were paid is taken during normal working hours with the employee being given time off with pay, does not in and by itself make the amount paid a non-taxable benefit to the employee. It is always a question of fact as to whether or not the course taken is primarily for the benefit of the employer (and considered not to be a taxable benefit to the employee) or to the benefit of the employee (and considered a taxable benefit).
We regret that our reply could not be more definitive.
Yours truly,
for Director Small Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch
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