Words and Phrases - "university"
GST/HST Policy Statement P-214R
3 categories of qualifying foreign universities
Foreign-based entities which qualify as a "university" in the Excise Tax Act ("ETA")
The definition of "university" includes the phrase "a recognized degree-granting institution". The Department's position is that there are three categories of foreign-based entities which would qualify as a "university". The three categories are:
1. a foreign-based degree-granting institution that grants degrees at least at the bachelor or equivalent level and is licensed or otherwise authorized under the appropriate governmental agency or department in its home jurisdiction to do so; or
2. a foreign-based degree-granting institution that qualifies under the Income Tax Act as a "university outside Canada" for purposes of the tuition credit in paragraph 118.5(1)(b) of that Act; or
3. a foreign-based degree-granting institution whose degrees are accepted for entry into post-graduate studies in at least one recognized Canadian university.
For purposes of this policy statement, "foreign-based" includes either a branch or a wholly-owned subsidiary of a foreign degree granting entity operating in Canada.
Klassen v. Canada, 2007 DTC 5612, 2007 FCA 339
In finding that an American educational institution called "Minot State University - Bottineau, which granted a two-year associate degree, with students following the two years being permitted to transfer course credits towards a bachelor degree at Minot State University, was not a "university outside Canada" for purposes of ss.118.5(1)(b) and 118.6(1)(b), Noël J.A. stated (at para. 21):
"I therefore conclude that the expressions 'university outside Canada' refers to an educational institution which confers degrees usually granted by universities, that is a doctorate degree, a masters degree or at minimum degrees at the baccalaureate level or its equivalent. The degree granted by MSU - Bottineau in this case (i.e., the 'associate degree') attests to the successful completion of a two year undergraduate program. As this is the highest degree which MSU - Bottineau can confer, it does not qualify as a 'university outside Canada'. The fact that MSU - Bottineau calls itself a university cannot alter this conclusion."
Dean v. The Queen, 2005 DTC 322, 2005 TCC 138 (Informal Procedure)
The taxpayer took some courses at the Nelson Marlborough Institute of Technology in New Zealand that would have led to a Diploma in Aviation Science (Helicopter) or a Bachelor of Commerce degree although he quit after obtaining sufficient courses to get a job as a helicopter pilot. It was found that the Institute qualified as a university given that it granted Bachelor of Commerce degree and the taxpayer's courses were creditable towards the Bachelor of Commerce degree.