Dear Sirs:
Re: Tuition Tax Credit
We are replying to your letter of July 31, l991 in which you request confirmation that your client is entitled to issue tuition tax credit receipts.
24(1)
We are unable to provide you with the confirmation you seek without a review of all the relevant facts and documentation relating to the 24(1) and the courses it offers. However, we can offer the following general comment concerning courses offered by an educational institution described in subparagraph 118.5(1)(a)(ii) which are not at a post-secondary school level.
Provided a student is enrolled at an educational institution in Canada which offers courses at a post-secondary school level and the aggregate of fees paid to that institution exceed $100, the student may claim a non-refundable tax credit based on the fees paid to that institution even if the course or courses taken by the student are not at a post secondary school level. However, provided that Bill C-18 which received first reading May 31, 1991 is enacted in substantially the same form as proposed, such fees will not be eligible for transfer to a supporting person other than a spouse.
As we discussed by telephone (Humenuk/ 19(1) on October 21, 1991, a Private Member's Bill, C-300, was introduced in the House on September 24, 1991 which proposes to amend paragraph 118.5(1)(a) to expand the definition of a qualifying educational institution to include;
(i.1) a school providing course at a primary or secondary school level and operated by or on behalf of Her Majesty in right of Canada or a province, a municipality in Canada, or a municipal or public body performing a function of government in Canada,
(i.2) a special educational institution designated by the Minister pursuant to subsection (3), or...."
Provided this Bill receives consideration by Parliament and is passed in substantially the same form as proposed, a student enrolled at a public school would be eligible for a tuition tax credit for fees paid to the school if the other conditions outlined in section 118.5 of the Act were met. As noted above however, the credit would not be available for transfer to a supporting person other than a spouse.
We trust our comments will be of assistance to you.Yours truly,J. Szeszycki for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch