29 November 1999 External T.I. 9928495 - FOREIGN ARTS SCH. QUALIFYIN EDU. PRG

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 a "qualifying educational program" can be offered by a foreign art school, thereby satisfying that part of the registration requirement in clause 146.1(2)(g.1)(i)(A).

Position: Yes.

Reasons: It is not necessary that a foreign arts school be a "designated educational institution" in order that it offer a "qualifying educational program".

XXXXXXXXXX 		992849
M. P. Sarazin
November 29, 1999

Dear Sir:

Re: Foreign Arts School and Qualifying Educational Program for RESP purposes

This is in response to your E-Mail dated October 27, 1999, which was forwarded to us by XXXXXXXXXX wherein you requested our reconsideration of our comments regarding the references to "qualifying educational program" and "post-secondary educational institution" in clause 146.1(2)(g.1)(i)(A) of the Income Tax Act (the "Act") and its application to a foreign arts school.

We agree that a foreign arts school could qualify as a "post-secondary educational institution" if it provides courses at a post-secondary school level at which a beneficiary was enrolled in a course of not less than 13 consecutive weeks. Whether a program is at a post-secondary school level is, of course, a question of fact.

The next requirement to be satisfied is that the program offered by the foreign arts school be a "qualifying educational program". The definition "qualifying educational program" in subsection 146.1(1) refers to the meaning that would be assigned to that expression in subsection 118.6(1) if that definition were read without reference to paragraph (a). The relevant excerpt from subsection 118.6(1) reads as follows:

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 and, in respect of a program at an institution described in the definition of "designated educational institution" (other than an institution described in subparagraph (a)(ii) [of that definition]), that is a program at a post-secondary school level.

You suggest that a program offered by the foreign arts school could qualify as a qualifying educational program even though the foreign arts school may not qualify as a designated educational institution within the meaning assigned by subsection 118.6(1) of the Act.

We agree that the reference to a "designated educational institution" is invoked only if the institution in question is a "designated educational institution" described in subparagraph 118.6(a)(i) of that definition. In other words, a foreign arts school that is a "post-secondary institution" - but not a "designated educational institution" described in subparagraph 118.6(1))(a)(i) of the Act - and that offers 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, will satisfy the two conditions in question in clause 146.1(2)(g.1(i)(A) of the Act.

We trust the above comments will be of assistance to you.

Yours truly,

Patricia Spice
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate