Qing Gang K. Li v. The Queen, 94 DTC 6059 (FCA)
The taxpayer, a Chinese citizen, entered Canada on a visitor's visa in 1984, and in 1987 married a Canadian citizen and applied for landed immigrant status. Because his application to become a landed immigrant evidenced an intention to remain in Canada permanently, it could not be said that he was "visiting" (i.e., temporarily resident) at the time that he received a bursary in 1990. Accordingly, the bursary was not exempt from tax under the Act.
Gu v. MNR, 91 DTC 821 (TCC)
In order to secure funds required to complete his doctoral program at the University of Toronto, the taxpayer (who was a resident of China) obtained employment at a Toronto law firm. In finding that the taxpayer's employment income was not exempted under Article 19 of the Canada-China Income Tax Convention, Bonner J. stated (p. 824):
"The language suggests that the payments must in some way be related to the recipient's maintenance costs, education costs or training costs. Payments are not received to cover cost of a specified class simply because the recipient ultimately spends the money to meet costs of the type named."
A Chinese student worked at the organization’s premises on a doctoral thesis and who was not enrolled in a Canadian university received a scholarship award from it. Was it exempt? After finding that the award came within s. 56(1)(o) as a research grant, CRA stated:
A student who was, immediately before travelling to Canada, a resident of the People's Republic of China and who stays in Canada only to continue the student’s education or training would not be taxable in Canada on the money received to cover the student’s maintenance and education expenses pursuant to Article 19 of the [Canada-PRC] Convention and may claim a deduction pursuant to ITA subparagraph 110(1)(f)(i).
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|Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(o)||assistance received by unenrolled student towards Ph.D. thesis research assistance was a research grant under s. 56(1)(o)||112|