March 4, 1991
Dear Sirs:
This is in reply to your letter of October 1, 1990 addressed to the Ottawa District Office concerning whether examination fees and the related non-refundable application fee paid to the 24(1) 24(1) qualify for the tuition fee tax credit under section 118.5 of the Income Tax Act (the "Act"). The matter was referred to this office for consideration and reply. We apologize for the delay.
24(1)
(c)
24(1)
(d)
You have noted that paragraph 3(b) of IT-516 "Tuition Tax Credit" indicates that an educational institution may include a professional organization and that paragraph 26 thereof indicates that examination and application fees are considered to be eligible tuition fees.
While the above references are accurate, some clarification is required. The reference in paragraph 3(b) assumes that the professional organization provides educational courses (i.e., a curriculum of study) to members on the proviso that one minimum qualification for membership is secondary school graduation. It is not clear from the information provided whether these two criteria are met.
We would also like to clarify that for examination fees and application fees to qualify as tuition fees, the examination would have to form an integral part of the course of studies. Based on the information you provided this does not appear to be the case.
We hope that these comments clarify the subject matter for you.
Yours truly,
for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch