An employer paid the tuition fees of one of its employees at a master's program. However, the employee was required to reimburse the employer upon the employee’s failure to return to work for a specified minimum period following the program completion. CRA stated:
[A] taxpayer receives a benefit for the purposes of section 118.6, where the taxpayer’s tuition is paid by the taxpayer’s employer with whom the taxpayer is dealing at arm's length. We are of the view, however, that the taxpayer would not receive a benefit for the purposes of section 118.6 if the taxpayer were to reimburse all tuition fees paid by the taxpayer’s employer. In such a situation, the taxpayer could generally, subject to satisfying all the other conditions set out in section 118.6, claim the education tax credit.