Principal Issues: Are part-time students at a university eligible to participate in the Lifelong Learning Plan (LLP)?
Position: No, only full-time students in a qualifying educational program are eligible for the LLP. Policy issue referred to Finance.
Reasons: Conditions of subsection 146.02(1) of the Act.
Signed on February 9, 2007
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Dear XXXXXXXXXX:
Mr. Michel Dorais, Commissioner of the Canada Revenue Agency (CRA), has asked me to reply to your letter received on January 15, 2007, concerning why part-time students are not eligible to participate in the Lifelong Learning Plan.
The Income Tax Act permits 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 Lifelong Learning Plan. The Lifelong Learning Plan is not available to individual's who are part-time students.
The CRA is responsible for administering and enforcing the Act as enacted by Parliament. Your questions and suggested amendment concerning the Plan relate to tax policy, which is the responsibility of the Department of Finance Canada. Any changes to the legislation would have to be considered by the Minister of Finance and approved by Parliament. It is therefore appropriate that you also sent this letter to the Honourable James M. Flaherty, Minister of Finance, for his consideration.
Thank you for having taken the time to write.
Sincerely,
Brian McCauley Assistant Commissioner Legislative Policy and Regulatory Affairs Branch Gary Allen 952-9853 January 24, 2007 2007-022094