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This translation was prepared by Tax Interpretations Inc. The CRA did not issue this document in the language in which it now appears, and is not responsible for any errors in its translation that might impact a reader’s understanding of it or the position(s) taken therein. See also the general Disclaimer below.
Principal Issues: [TaxInterpretation translations] Can continuing education courses offered by XXXXXXXXXX qualify for the tuition tax credit?
Position: None.
Reasons: Question of fact.
XXXXXXXXXX
2010-037611
I. Landry, M. Fisc
October 4, 2010
Dear Madam,
Subject: Tuition tax credit
This is in response to your email of July 26, 2010, in which you asked us whether continuing education courses offered by XXXXXXXX to individual members of a professional order can be eligible for the tuition tax credit. You indicated that these continuing education courses are of varying lengths (half a day, one day, or more) and do not qualify for university credits.
Unless otherwise indicated, all legislative references are to the provisions of the Income Tax Act (the "Act").
Our Comments
As stated in paragraph 22 of Information Circular 70-6R5, it is the practice of the Canada Revenue Agency (the "CRA") not to issue a written opinion regarding proposed transactions otherwise than by way of advance rulings. Furthermore, when it comes to determining whether a completed transaction has received appropriate tax treatment, that determination is made first by our Tax Services Offices as a result of their review of all facts and documents, which is usually performed as part of an audit engagement. However, we can offer the following general comments that we hope may be helpful to you.
CRA's general position on the tuition tax credit is set out in Interpretation Bulletin IT-516R2, Tuition Tax Credit (the "Bulletin"). This Interpretation Bulletin is available on the CRA Internet site at http://www.cra-arc.gc.ca/E/pub/tp/it516r2/READ-ME.html.
In order for tuition fees to be eligible for the tuition tax credit, subsection 118.5(1) requires, among other things, that tuition fees in excess of $100 be paid by an individual who is enrolled in the year at one of the following educational institutions:
- a university, college or other educational institution providing courses at a post-secondary school level, or
- an institution certified by the Minister of Human Resources and Skills Development to be an educational institution providing courses, other than courses designed for university credit, that furnish a person with skills for, or improve a person’s skills in, an occupation.
However, subparagraph 118.5(1)(a)(ii.1) provides that fees paid to a university, college or other educational institution providing courses at a post-secondary school level in Canada will not qualify if they were paid for courses that are not at a post-secondary school level. As indicated in paragraph 8 of the Bulletin, generally, for a course to be considered to be at the "post-secondary school level," the course should provide credit towards a degree, diploma or certificate, and a prerequisite for taking the course should be completion of secondary school.
In the situation submitted, it appears that the continuing education courses offered by your institution would not be post-secondary level courses since they do not lead to university credits.
However, your institution may be an educational institution recognized by the Minister of Human Resources Development. As stated in paragraph 4 of the Bulletin, the accreditation of an institution is not within our jurisdiction.
In addition to being recognized by the Minister of Human Resources Development as a recognized educational institution, the conditions in subparagraph 118.5(1)(a)(ii.2) must be satisfied for continuing education courses you offer to individuals who are members of a professional order to be eligible for the tuition tax credit. This subparagraph provides, among other things, that fees paid to a recognized institution will not be eligible if the individual enrolled at the educational institution had not attained 16 years of age before the end of the year and the purpose of the individual’s enrolment at the institution cannot reasonably be regarded as being to provide the individual with skills, or to improve the individual’s skills, in an occupation.
Whether it is reasonable to consider that the reason for an individual's registration at an institution is to enable the individual to acquire or improve the skill necessary to carry on an occupation is a question of fact that can only be determined after an examination of all the facts and circumstances surrounding each particular situation.
We hope that our comments are of assistance.
Best regards,
Randy Hewlett
Manager
for the Director
Ontario Corporate Tax Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch.
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