Principal Issues: Is a particular program abroad eligible for the Tuition Tax Credit?
Position: A question of fact
Reasons: For programs before the 2011 tax year, the 13 week requirement must be met; otherwise the 3 week condition would apply. Also, the educational institution must be a university outside of Canada.
XXXXXXXXXX 2011-041323 George A. Robertson, CMA February 20, 2012
Dear XXXXXXXXXX :
Re: Tuition Tax Credit for Educational Institutions outside of Canada
This is in response to your July 5, 2011 email request on qualifying for the Tuition Fee Income Tax Deduction, otherwise known as the Tuition Tax Credit for an educational institution located outside of Canada.
The details presented are:
- a total of 6 or 7 weeks on intense study in XXXXXXXXXX and XXXXXXXXXX for each of XXXXXXXXXX years in XXXXXXXXXX ;
- the remaining time in Canada consists of course work, developing and conducting programs under the guidance of the School;
- the whole program is being completed on a part-time basis
- the total program is greater than 13 weeks yet the formal part is only 6 or 7 weeks.
Our comments:
Paragraph 9 of Income Tax Interpretation Bulletin Tuition Tax Credit IT 516R2 states, in part:
A student at an educational institution outside Canada described in paragraph 118.5(1)(b) or (c) [of the Income Tax Act (Act)] may claim a tuition tax credit for the tuition fees paid for the year to that institution in the circumstances and to the extent set out below:
a) An individual who is, during the year, a student in full-time attendance at a university outside Canada in a course leading to a degree at not lower than the bachelor or equivalent level may claim under paragraph 118.5(1)(b) a tuition tax credit for any tuition fees paid for the year to that university, provided that the fees are for a course of not less than 13 consecutive weeks in duration.
The 2011 Budget proposed to reduce the 13-week minimum duration requirement to three consecutive weeks with respect to the Tuition, Education and Textbook Tax Credits for Canadians studying full-time at a university outside Canada. This measure applies for the 2011 and subsequent taxation years.
The term "university" is not defined in the Act. Paragraph 118.5(1)(b) of the Act refers to "a university outside Canada in a course leading to a degree". Recognition of a foreign institution as a university for the purpose of the tuition and education tax credits will be considered at the request of the institution. Such enquiries should be directed to:
Manager, Validation Policies and Procedures Section
Individual Returns Directorate, Assessment and Benefit Services Branch
5th floor, 25 McArthur Avenue
Ottawa ON K1A 0L5
We trust that these comments will be of assistance
Yours truly,
Sharmini Ratnasingham
Assistant Director
Personal and Credit Section
Financial Industries Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch