Principal Issues: Are T4A slips required to be distributed to students receiving scholarships to primary and secondary schools?
Position: Yes
Reasons: Reg. 200(2) requires all scholarship amounts to be reported in prescribed form.
XXXXXXXXXX 2011-040393 George A. Robertson, CMA September 1, 2011
Dear XXXXXXXXXX :
Re: Filing of T4As in respect of primary and secondary school scholarships and bursaries
I am writing in response to your letter of April 15, 2011 concerning whether there is continuing need to issue T4As to students of a primary or secondary school who receive scholarships or bursaries.
Notwithstanding the fact that a scholarship or bursary may not be taxable to the recipient, subsection 200(2) of the Income Tax Regulations requires a T4A slip to be issued. According to Guide RC4157, Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary, scholarship and bursary amounts would go in an "Other information" box with the code 105.
We trust these comments will be of assistance.
Yours truly,
Sharmini Ratnasingham
Assistant Director
Ontario Corporate Tax Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch