Principal Issues: Why non-disabled part-time students cannot participate in the Lifelong Learning Plan.
Position: Definition of eligible amount requires that the designated person (the student) is enrolled as a full-time student in a qualifying educational program. The definition of full-time student in subsection 146.01(1) extends full-time student status to part-time students meeting certain disability conditions. Policy issue referred to Finance.
Reasons: Conditions of subsection 146.02(1) of the Act.
August 16, 2010
XXXXXXXXXX
Dear XXXXXXXXXX :
Thank you for your correspondence of July 7, 2010, concerning eligibility for participation in the Lifelong Learning Plan (LLP). It is always nice to hear from my constituents.
You think that the legislation regarding the LLP is unfair because part-time students are unable to participate in the LLP unless they meet certain disability conditions.
The Income Tax Act permits an individual, or the spouse or common-law partner of an individual, who is enrolled as a full-time student in a qualifying educational program and who satisfies certain other conditions, to withdraw an amount from his or her registered retirement savings plan under the LLP. The term "full-time student" is extended under the Act to include a part-time student that is either eligible for the disability tax credit or cannot reasonably be expected to be enrolled on a full-time basis because of the student's mental or physical impairment, as certified in writing by an appropriate medical practitioner. The LLP is not available to part-time students who do not meet either of the disability conditions described above.
You can find information concerning the LLP in Guide RC4112, Lifelong Learning Plan (LLP), available at your local tax services office or on the Canada Revenue Agency (CRA) Web site at www.cra.gc.ca/E/pub/tg/rc4112.
The CRA is responsible for administering and enforcing the Act and must apply it as written. To enable part-time students to participate in the LLP, a legislative amendment to the LLP provisions contained in the Act would be required. The Department of Finance Canada is responsible for amending and implementing tax policy. I am therefore forwarding a copy of our correspondence to the Honourable James M. Flaherty, Minister of Finance, for his consideration.
I trust that the information I have provided is helpful.
Yours sincerely,
Keith Ashfield
Minister of National Revenue
c.c.: The Honourable James M. Flaherty‚ P.C.‚ M.P.
Minister of Finance
House of Commons
Ottawa ON K1A 0A6
Jason R. Ward
(613) 957-9769
2010-037448