| December 15, 1989 | |
| B.W. Dath | A.C. Humenuk |
| Director | 957-2135 |
| Business and General Division | 0-0280 |
SUBJECT: Designated Educational Institutions
In the attached memorandum from Registration Directorate to Assessing and Enquiries Directorate dated September 26, 1989, the question is raised as to which Division or Directorate is responsible for answering enquiries concerning "designated educational institutions" under subsection 118.6(1) of the Income Tax Act (the "Act") (formerly paragraph 110(9)(a) of the Act).
Paragraph 11 of Interpretation Bulletin IT-224R3 and paragraph 14 of IT-515 indicate that individuals should address their questions to the institution offering the course and the institution in turn should address its questions to:
a) the administrators of the Canada Student Loan Program (i.e. the provinces) for educational institutions described by subparagraph 118.6(1)(a)(i) of the Act (e.g. universities in Canada);
b) Employment and Immigration Canada for educational institutions described subparagraph 118.6(1)(a)(ii) of the Act (e.g. courses which furnish skills); or
c) Registration Directorate for educational institutions described by paragraph 118.6(1)(a) and (b) of the Act (e.g. qualifying institutions outside Canada).
Given that Registration Directorate's involvement is with institutions outside Canada, their concern is likely focused on such institutions. Paragraph 4 to 6 of IT-516 offers some comments on the criteria for a tuition tax credit for institutions outside Canada. It is our understanding that Registration Directorate has the mandate to determine whether or not a particular institution is either a university outside Canada (paragraph 118.6(1)(b) of the Act) or a qualifying educational institution in the United States (paragraph 118.6(1)(c) of the Act). We have answered no written queries on the subject for the purpose of the education deduction/credit although we did deal with one query concerning the tuition fees to be paid to a U.S. university which was planning on holding courses on a Canadian campus. We advised that it appeared as if the institution offering the course would still be a university outside Canada (as opposed to a university inside Canada) and that paragraph 118.5(1)(c) of the Act would not apply, notwithstanding the fact that the course itself would be offered in Canada.
With respect to the other two categories of institutions which qualify as designated educational institutions , it is our view that the mandate for certification or designation rests outside the Department. As with institutions outside Canada, we have not had many enquiries on these types of institutions. The attached form T2020 summarizes the conversations held concerning the question of where queries of this nature should be addressed. Our role in this matter in the past has consisted primarily of giving advice to the particular Department or Directorate responsible for making the designation or certification.
P.D. FuocoChiefPersonal and General SectionBusiness and General DivisionSpecialty Rulings DirectorateLegislative and IntergovernmentalAffairs Branch