Section 250.1

new item

Paragraph 250.1(a)

See Also

Marino v. The Queen, 2020 TCC 50 (Informal Procedure)

s. 250.1 applies only to persons who would not be taxpayers under Oceanspan

An individual with no connection to Canada paid a lot in tuition fees while in attendance at U.S. universities prior to 2012 then, on immigrating to Canada, claimed his purported unused tuition tax credits as a deduction from Canadian tax. Given that the tax credit provisions referred to an individual’s “taxation year,” the Crown successfully argued the Oceanspan principle that “a non-resident with no source of income in Canada, was not a ‘taxpayer’ and therefore did not have a taxation year” (para. 29). Monaghan J rejected the taxpayer’s position that s. 250.1(a) had the effect of deeming any non-resident to have a taxation year - and instead indicated (at para. 38) that this provision only “applies where a non-resident must have a taxation year if a provision of the Act is to operate as it is intended to operate, including in respect of another taxpayer,” for example, respecting a non-resident trust with a resident beneficiary recognizing income under s. 104(13) based on when that trust has a taxation year end. In this regard, she further stated (at para. 38):

[P]aragraph 250.1(a) applies only to those non-residents for whom a taxation year must be identified for a purpose mandated by the Act (including for the purpose identified in paragraph 250.1(b)) but who are not taxpayers and therefore would not otherwise have a taxation year for purposes of the Act. … It does not operate to give every non-resident a taxation year thereby allowing every non‑resident to bring themselves within the scope of the Act.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 118.5 - Subsection 118.5(1) - Paragraph 118.5(1)(b) tuition paid prior to becoming subject to tax under Part I was not to be recognized under s. 118.5(1)(b) 455
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Taxpayer an individual not within s. 2(1) or (3) was not a taxpayer who could generate a tuition tax credit 293