Principal Issues: When will PSE assistance paid to status Indians have to be reported ?
Position: The reporting requirement will first apply to amounts paid in the 2006 calendar year.
Signed on November 3, 2004
XXXXXXXXXX
Dear XXXXXXXXXX:
The Honourable John McCallum, Minister of National Revenue, has asked me to reply to your letter of September 10, 2004, concerning the taxation of post-secondary education assistance paid to status Indians.
As I explained in my letter of July 22, 2004, the Canada Revenue Agency is currently reviewing its position on this matter. In your letter, you ask for clarification as to which taxation year would be affected should the review result in a determination that the post-secondary education assistance must be included in income. I can confirm that such a determination would first affect amounts paid during the 2006 taxation year, which would therefore have to be reported on a T4A slip by the February 2007 filing date. Similarly, status Indian students would first be required to report education assistance that is not personal property situated on a reserve on their 2006 T1 individual income tax return with respect to amounts received in that year.
I trust the information I have provided will be of assistance.
Yours sincerely,
Ed Gauthier
Deputy Assistant Commissioner
Tax and Regulatory Affairs
Policy and Planning Branch
Renée Shields
(613) 948-5273
2004-009663
October 12, 2004