24(1)
900761
S. Short
(613) 957-2134
19(1)December 17, 1990
Dear Sirs:
Re: Tuition Fees
This is in reply to your letter of May 8, 1990 concerning the deductibility of tuition fees paid to a private school which provides courses at the elementary, junior and secondary school level. As we understand it, the school also offers advanced courses in French and Calculus which entitle the student to write an examination at the University of Manitoba. If they pass, they are entitled to receive a course credit from that University.
It is your view that the French and Calculus courses offered by the school are courses at the post-secondary school level. Accordingly, you have asked whether all tuition fees paid to the school are eligible for a tax credit under subparagraph 118.5(1)(a)(i) of the Act, regardless of whether the particular student is enroled in one of these courses. In addition, you asked whether such fees are transferrable to a supporting person to the extent that the student is unable to utilize the credit.
Our Comments
Without complete details of the content and enrolment in these advanced courses and the name of the particular school, we cannot comment specifically on your questions. However, the following general comments may be of assistance to you.
It is a question of fact as to whether courses offered by an educational institution are at a post-secondary school level. Where an institution provides bona fide courses at the post-secondary school level in addition to courses offered at other levels, subparagraph 118.5(1)(a)(i) of the Act provides that fees paid for all courses offered by that institution can qualify for a tax credit to the student.
In July, 1990, the Honourable Michael H. Wilson, Minister of Finance, released details of draft amendments to the Income Tax Act which, among other things, would restrict the transfer of tax credits for tuition fees under subsection 118.5(1). Clause 91 of those amendments, if enacted in its present form, will be effective for tuition fees relating to a period after June, 1990.
We apologise for the delay in our reply and trust that the above comments will be of assistance to you.
Yours truly,
for Director Business and General Division Rulings Directorate Legislative and Intergovernmental Affairs Branch
cc. Mr. R. D'Aurelio, Director Current Amendments Division