Subsection 118.6(1) - Definitions
Administrative Policy
11 March 1993 T.I. (Tax Window, No. 30, p. 22, )2495)
Students taking courses provided by the Certified General Accountants Association who are employed in the accounting field will not be entitled to the deduction because of the exception in paragraph (b) of the definition of "qualifying educational program" in s. 118.6(1).
5 August 1992 T.I. 921713 (May 1993 Access Letter, p. 203, ¶C117-187; Tax Window, No. 23, p. 22 ¶2135)
Students in "co-operative courses" who attend school for a period and then work for a like period in a business relating to their academic studies are only eligible for the credit in respect to those calendar months in which they are enrolled as full-time students at the school for at least part of the month.
14 July 1992, T.I. 921748/921721 (March 1993 Access Letter, p. 77, ¶C117-181)
In response to an inquiry as to whether the credit was available for participation in the Canadian Job Strategies Program or the Ontario Basic Skills Program it was noted that a student participating in a program which was available to the public at large would not be considered to have received the benefit solely by reason of tuition not being charged for that program. There was no obligation for the student to complete the course.
Designated Educational Institution
See Also
Zochowski v. The Queen, 2012 DTC 1224 [at 3624], 2012 TCC 277
The Ontario-resident taxpayer's claims for tuition tax credits and textbook credits were denied in respect of an online masters of science program from a US university because the courses were 10 weeks in duration. Because the 10-week course duration meant that the university was not a "designated educational institution" for the taxpayer, his education credit was also denied.
Yacubowicz v. The Queen, 2011 DTC 1084 [at 475], 2011 TCC 64
Sotheby's Institute of Art New York was not a degree-granting institution during the relevant period, but it ran a program wherein students could, through studies at Sotheby's, earn a Masters of Arts recognized by the University of Manchester.
Boyle J. found that the taxpayer could not deduct her tuition amounts for studies at Sotheby's. Unlike s. 118.5(1)(a), paragraph (b) requires that studies take place at a "university." Prior cases have established that a "university" must at least be able to grant bachelor's degrees. It is not sufficient that the course of study at a non-university can result in a degree from an affiliated university (para. 8).
In respect of study periods outside Canada, the s. 118.6(2) education credit and s. 118.(2.1) textbook credit are likewise only available for university studies (para. 11).
Administrative Policy
27 March 2013 Folio S1-F2-C1
The expression enrolled in the program to obtain skills for an occupation means that there must be sufficient skills to be acquired in the program to enable the student to work at an occupation. The expression enrolled in the program to improve skills in an occupation implies that the student already possesses sufficient skills to enable the student to work at an occupation and the program must be capable of improving those skills. An occupation, for this purpose, is considered to be employment as well as a profession, vocation, or trade. It is a question of fact whether a particular program is capable of improving a student's occupational skills or is sufficient to furnish the student with enough skills to enable the student to work at an occupation. Second language training (in particular, French or English) may be viewed as providing a student with skills in an occupation as long as the course is undertaken for the purpose of gaining or improving language skills required for an occupation.
Where a course is taken at an HRSDC-certified institution for personal or recreational purposes, no education tax credit is available.
Qualifying Educational Program
See Also
Kandasamy v. The Queen, 2014 DTC 1075 [at 3053], 2014 TCC 47
Rip CJ found that the taxpayers, who were medical residents, were eligible for educational and textbook tax credits. The residency programs were administered by the medical schools of various Canadian universities, which were designated educational institutions.
The residency program was a qualifying educational program notwithstanding that residents did not take at least 10 hours of classes. Rip CJ stated (at para. 55):
The word "or" in the phrase "course or work" ... must be conjunctive. The word "or" permits an individual to follow a qualifying educational program that is wholly made up of academic courses or one that is wholly made up of work.
Regarding the Minister's argument that residents were employees rather than students, Rip CJ stated (at para. 54):
I do not find it illogical in reading Subsection 118(6) that a person can be both a full-time student and a full-time employee or even carry on his or her own business on a full-time basis while a full-time student.
Lahlou v. The Queen, 2014 DTC 1010 [at 2540], 2014 TCC 16
Before going on to follow Huang in finding that post-doctoral fellowships received by the taxpayer (prior to 2010 amendments to the definition of "qualifying educational program") from McGill University qualified for the s. 56(3) scholarship exemption, Boyle J stated (at para. 19) "that in this case it appears clear that the purpose and structure of the post-doctoral fellow program was the continued training and education of the fellows within a fixed period of time following the receipt of their doctoral degree."
Ferre v. The Queen, 2010 1405 [at 4635], 2010 TCC 593
The taxpayer did not qualify as being in "full-time" attendance in an online-MBA program at the University of Liverpool given that the University expected that the program would take between 20 to 25 hours per week to complete.
Castela v. The Queen, 2005 DTC 781, 2005 TCC 109
The taxpayer, who was earning her Master of Arts in Education/Curriculum and Instruction, "attended the program on a full-time basis at the Vancouver campus of the University of Phoenix while continuing to work full-time as a resource teacher at a Burnaby District Elementary school" (p. 782). It was found that her program of study was not part of her duties of employment but, rather, was connected with her profession. Accordingly, she was entitled to the credit claimed.
Reiner v. The Queen, 2005 DTC 308, 2005 TCC 115
The taxpayer, who was a full-time teacher, also was pursuing a course of studies at a U.S. university leading to a Master of Arts in Curriculum Instruction. This program was found not to be undertaken as part of her duties of employment or "in connection with" her duties of employment but, rather, was undertaken in connection with her profession. The "joining, fastening or linking together" is with the Appellant's personal skill ...".
Administrative Policy
27 March 2013 Folio S1-F2-C1
It is not necessary for the three consecutive weeks to be in the same calendar month. Periods where there are no classes, such as reading week may be included in the three week period as long as the hourly work requirement is met. A student may qualify for the part-time education tax credit for those months in which the student was enrolled at a designated educational institution but was not in a qualifying educational program ... .
27 March 2013 Folio S1-F2-C1
The amendment to restrict the education tax credit to programs that lead to a degree clarified the intent of the legislation and confirmed the CRA's existing position. Post-doctoral fellowships have consistently been viewed and treated by the CRA in the same manner as other programs that require individuals to undertake a period of paid training after the completion of an individual's studies and prior to pursuing an independent professional career (for example, apprentices, articling students for accounting and law, and medical residents).
27 March 2013 Folio S1-F2-C1
An occupational training allowance similar to that in [para. (c) of "qualifying educational program"] but given by any other granting authority must be examined to determine if it is included in income under a separate provision of the Act. If it is, the student is disqualified from claiming the education tax credit unless the amount is an award or prize described in [para. (a) of "qualifying educational program"]. A non‑repayable portion of a student loan is not considered to be a grant and does not disqualify a student from claiming the education tax credit.
27 March 2013 Folio S1-F2-C1
The CRA generally considers free tuition to be a benefit unless a program is available to the public at large at no cost. For example, if an educational institution were to offer free tuition only to persons age 65 or older, these individuals would have received a benefit such that they would not be entitled to the education tax credit. Where free or reduced tuition is determined to be a scholarship or bursary pursuant to paragraph 56(1)(n), the student's ability to claim the education tax credit is not affected by the benefit.
29 June 1995 Memorandum 950665 (C.T.O. "Education Tax Credit")
RC employees receiving reimbursements for CGA or CMA courses typically would not be entitled to the education tax credit, because typically they are employed in an accounting-related occupation (as broadly defined) and, moreover, they are being reimbursed by their employer.
Subsection 118.6(2) - Education credit
Administrative Policy
14 November 2014 T.I. 2014-0540411E5 F - Crédit d'impôt pour études
Before concluding that on the basis of redacted facts the program in question did not qualify as "at a post-secondary level" so that it was not a "qualifying educational program, CRA stated (TaxInterpretations translation):
There is no section of the Act…which requires an educational institution to deliver a T2202A. However, the education credit will be refused if the enrolment of an individual is not attested to by a T2202A.
27 March 2013 Folio S1-F2-C1
Generally, an educational institution's classification of a student as full-time or part-time will be accepted if the method of classification is reasonable and consistent.
A student who is in regular attendance in a qualifying educational program is considered to be enrolled as a full‑time student. Similarly, a student who is participating in graduate studies on a regular basis in a particular month is ordinarily considered to be enrolled as a full-time student if the student is registered for the regular academic year even though the requirements for attendance in class for such studies are minimal. Therefore, such a student who spends much of the time in a laboratory or library engaged in research or writing a thesis or who spends part of the academic year engaged in research elsewhere than at the university would normally be regarded as being a full-time student at the institution where the student is so registered.
A student is not considered to be enrolled during work terms, e.g. in a co-op program (para. 1.27).
Part-time enrollment at two designated educational institutions will be considered full-time enrollment if the two enrollments represent a single program of study that would otherwise qualify (including that the sum of hours meets the full-time threshold) (para. 1.28).