The taxpayer, who had been employed as a temporary lecturer at a University Department, was hired to work as a professor at the Department upon her completion of doctoral studies at a US university and was paid by the Department various of the expenses incurred by her in connection with such studies including the tuition fees of the US university.
After finding that the tuition reimbursement amounts otherwise would have been employment income pursuant to s. 6(3), but in finding that there was not taxable benefit, the Directorate stated:
[T]raining courses that are taken to maintain or improve skills related to the employer's business are generally considered to be of primary benefit to the employer if it is reasonable to expect that the employee will return to employment for a significant period of time after the course is completed. [Here] the doctoral courses taken were in a field related to the Taxpayer's potential responsibilities with the Employer. Furthermore, the Taxpayer was to return to the Employer's employ for a period at least as long as the number of years she had pursued her doctoral studies and on the date of her submission … she was still employed by the Employer.