Tax Court of Canada


Tax

Income tax

Tax credits

To qualify for tuition tax credit taxpayer must be attending university outside Canada on full-time basis in course leading to degree

Taxpayer attended university in United States from May 2014 to May 2015 and completed master of business administration. One Year Program was composed of three semesters and summer session included ten consecutive courses each of which was one or two weeks duration. Cost of One Year Program and amount claimed by taxpayer as tuition tax credit for subject taxation year was $47,918 consisting of $21,577 for summer session and $26,341 for fall semester. Minister of National Revenue denied taxpayer’s tuition tax credit in amount of $21,577 for 2014 taxation year. Taxpayer appealed. Appeal allowed. In order to qualify for tuition tax credit taxpayer must be attending university outside Canada on full-time basis in course leading to degree and fees must be paid in respect of course of at least three consecutive weeks duration. In this instance, there was no doubt that taxpayer was in full-time attendance during summer semester following courses that lead to degree. Attendance at all ten courses was mandatory, taxpayer registered for summer semester and paid single fee, and all courses were taken consecutively over ten-week period. Textual, contextual and purposive analysis of subject provision lead to conclusion that tuition fee paid by taxpayer in respect of summer semester met requirements of s. 118.5(1)(b) of Income Tax Act.

Fortnum v. The Queen (2018), 2018 CarswellNat 3458, 2018 TCC 126, Guy Smith J. (T.C.C. [Informal Procedure]).


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