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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Whether an individual is enrolled as a full-time student for purposes of the education credit provided in section 118.6.
Position TAKEN:
Generally, we must rely on the institution's determination as to whether an individual meets its requirements for registration as a full-time student (in this situation, the student was not classified as full-time, but the institution is presently reconsidering his case).
Reasons FOR POSITION TAKEN:
It is a question of fact (¶ 5 of IT-515R2), and the term "enrolled...as a full-time student" is not defined in the Act. Furthermore, subsection 118.6(2) specifically requires enrolment "as a full-time student at a designated educational institution." Therefore, the institution's classification of its students is relevant for purposes of this provision.
July 8, 1997
Mr. Richard Gendron HEADQUARTERS
Manager M. Azzi
Ministerial Correspondence Division (613) 957-8953
7-971711
Request for Insert on Education Credit - XXXXXXXXXX
In response to your request of June 24, 1997, we are providing you with the following insert to be included in reply to the queries raised by the above-noted taxpayer regarding full-time enrolment for purposes of the education credit provided in section 118.6 of the Income Tax Act:
"I understand that you are concerned with the manner in which XXXXXXXXXX classifies its post-graduate students as full-time or part-time, and that you feel that this classification may be inconsistent with the provisions of the Income Tax Act (the "Act"). I also understand that you have been provided with a copy of Interpretation Bulletin IT-515R2, entitled Education Tax Credit.
Subsection 118.6(2) of the Act authorizes a student to claim an education tax credit for each month in the calendar year during which the student is enrolled in a qualifying educational program as a full-time student at a designated educational institution. While the terms "designated educational institution" and "qualifying educational program" are defined in subsection 118.6(1) of the Act, the term "enrolled...as a full-time student" is not defined in the Act. Nonetheless, paragraphs 5 to 7 of IT-515R2 provide general comments regarding the Department's interpretation of this term.
As indicated in paragraph 5 of IT-515R2, the requirement for enrolment as a full-time student at a designated educational institution must ultimately be met on the basis of the facts of each case. Thus, generally, we must rely on the institution's determination as to whether an individual meets its requirements for registration as a full-time student. It should also be noted that subsection 118.6(2) of the Act specifically requires enrolment "as a full-time student at a designated educational institution." Therefore, the institution's classification of its students is relevant for purposes of this provision.
I understand that you have relayed your concerns regarding your student status to your institution and that the institution is presently considering your request. If the institution determines that your status should be revised and provides you with certification to this effect, you may submit this documentation, along with a request for adjustment to your tax returns for the relevant taxation years, to your local Tax Services Office for consideration.
In closing, I also wish to emphasize that the requirement respecting a "qualifying educational program" must also be met as it is a test separate from the requirement for enrolment as a full-time student at a designated educational institution. For comments on the term "qualifying educational program" (which, as indicated above, is defined in subsection 118.6(1) of the Act), you may refer to paragraphs 10 to 16 of IT-515R2. Also note that, from the information provided, we cannot establish whether you were enrolled in a "qualifying educational program." In particular, we cannot establish whether the program meets the requirement of subsection 118.6(1) of the Act that it be "a program of not less than 3 consecutive weeks duration that provides that each student taking the program spend not less than 10 hours per week on courses or work in the program." In addition, the definition of "qualifying educational program" specifically excludes a program of study taken in connection with, or as part of, the duties of the student's employment, and during a period for which the student is receiving income for that employment. I understand that you are employed more than 16 hours per week. If the course material is related to your employment, you will not be considered to be enrolled in a qualifying educational program. In this regard, the comments in paragraphs 17 to 22 of IT-515R2 will be of assistance."
John F. Oulton
Section Chief
Business, Property and Employment Section II
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation 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, 1997
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, 1997
Email this Content