Principal Issues: Whether shipping and handling fees related to the cost of books or similar material included in the cost of a correspondence course when the student is enrolled in such a course given by an eligible educational institution in Canada are tuition fees for the purposes of the tuition tax credit under subsection 118.5(1).
Position: Generally yes.
Reasons: The cost of books or similar materials included in the cost of a correspondence course when the student is enrolled in such a course given by an eligible educational institution in Canada generally includes shipping and handling related to these books or similar materials.
XXXXXXXXXX 2019-081344
Jean-François Benoit,
CPA, DESS Fisc.
February 26, 2024
Dear Madam,
Subject: Tuition fees for a correspondence course
This letter is in response to XXXXXXXXXX's email of June 17, 2019 asking whether shipping and handling charges for books or similar materials included in the cost of a correspondence course constitute tuition fees for purposes of calculating the tuition tax credit pursuant to subsection 118.5(1) of the Income Tax Act (the "Act").
Our Comments
This technical interpretation provides general comments about the provisions of the Act. It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination. The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC70-6R12, Advance Income Tax Rulings and Technical Interpretations.
Paragraph 2.35 of Income Tax Folio S1-F2-C2, Tuition Tax Credit, available on the Government of Canada's Internet site at www.canada.ca, indicates that the cost of books or similar materials included in the cost of a correspondence course in which the student is enrolled and which is given at an eligible educational institution in Canada constitutes tuition fees for the purposes of section 118.5 of the Act.
We are of the view that the cost of these books or similar materials includes the related shipping and handling charges.
We hope you find our comments of assistance.
Best regards,
Isabelle Landry
Manager
Business and Employment Income Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs