18 March 1998 Ministerial Letter 9803958 - SASKATCHEWAN'S PROVINCIAL TRAINING ALLOWANCES

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 Saskatchewan's Provincial Training Allowance is a bursary or social assistance

Position:

modifies somewhat the comments in 972251

Reasons:

type of training being offered is life skills, literacy, basic adult education, forms which are not ordinarily funded by a "bursary."

Deputy Minister’s Office (2)
Assistant Deputy Minister’s Office (2)
Pending Copy
Return to Rulings, 15th Floor, Albion Tower

March 18, 1998

XXXXXXXXXX

Dear XXXXXXXXXX:

Thank you for forwarding a copy of your correspondence dated February 13, 1998, sent to Mr. Scott Clark, Deputy Minister of Finance Canada, regarding Saskatchewan's Provincial Training Allowance (PTA) program.

The Income Tax Rulings and Interpretations Directorate of this Department has re-examined the PTA and, in light of additional information and discussion with XXXXXXXXXX, is now of the view that payments under this program are more in the nature of social assistance payments than bursaries. Accordingly, recipients will not be subject to income tax on these payments. For your information, I have attached a copy of the letter faxed, on February 25th, to XXXXXXXXXX.

While the Department's opinion of what constitutes a bursary has not changed as a result of this review, the type and calibre of training and learning being specifically provided under the PTA program is not of a type ordinarily funded by a "bursary."

Thank you bringing this matter to my attention.

		Rob Wright
		Deputy Minister

Attach.

c.c. C. Scott Clark, Deputy Minister, Finance Canada

Director, Regina TSO

Sandra Short
957-2136
February 27, 1998
980395