Principal Issues: [TaxInterpretations translation] (1) Under the proposed scholarship and fellowship exemption, is a Natural Sciences and Engineering Research Council of Canada postdoctoral fellowship a non-taxable scholarship?
Position: Since this measure has not yet been enacted, we cannot comment on it.
XXXXXXXXXX 2006-019070
July 7, 2006
Dear Madam,
Subject: Request for technical interpretation: Exemption of scholarships and bursaries
This is in response to your letter dated August 18, 2005, requesting additional information regarding the Government of Canada's intention to make all scholarship and bursary payments to students tax-free.
As you have noted, the Government of Canada announced - at the time of the federal budget on May 2, 2006 - its intention to exempt from taxation scholarships and bursaries paid to students. However, as this has not yet been enacted into law, we are not in a position to answer your questions or provide any further details.
We hope that this information is of assistance.
Best regards,
François D. Bordeleau, LL.B.
Individuals, Business and Partnerships Section
Income Tax Rulings Directorate