111 Grangeway Avenue

Suite 402, PO Box 9

Scarborough, ON

M1H 3E9

To contact us:

Phone: 416-756-9313

Fax: 416-756-4681

E-mail: dave@dfmc.on.ca


Interest on Student Loans


Interest paid on a bank loan required because the taxpayer did not qualify for student loans under government assistance programs did NOT qualify for the tax credit under Section 118.62 of the federal Income Tax Act.


 Reference: Access to Information document 9921965 (E)


Tuition tax credit


Students under the age of 16 will not be entitled to claim a tuition credit with respect to tuition fees paid to an institution certified by HRDC.


Reference: Access to Information document 9918405 (E)



For all PCCs; from Interpretation Bulletin 516R2


Refund of Tuition Fees


If a certificate has been issued by an educational institution to a student who subsequently receives a refund for part or all of the tuition fees covered by that certificate, the student should be requested by the institution to return the original certificate and, in the case of a partial refund, a new one should be provided covering the actual tuition fees paid. If the institution is unable to retrieve the original certificate, it will advise the local Revenue Canada tax services office of the name and address of the student and the amount of tuition fees refunded.


GST/HST News No. 34 - Fall 1999


Page two of this newsletter indicated that vocational schools were "allowed" to provide courses exempt of GST where the courses lead to certificates, diplomas, or licences attesting to competence. This represents no change but merely reinforces the governments position with respect to the exempt supply status. What I wish to highlight is that in the definition of "vocational school" found in GST/HST Policy Statement P-229 the schools must be established primarily and operated primarily to provide courses that develop or enhance students occupational skills. The threshold for primarily doing something is 50%. The types of activities include:


sale of textbooks and other course materials;

lease of residential accommodations;

locker rentals;

photocopying services;

library or lab fees;


issuance of official transcripts and documents


If you are claiming a GST rebate on a portion of your activities be aware of the above. The 50% rule will be tough to argue.


Excise Tax Act, Section 8 exemption


Exemption under this section covers Universities, Colleges, School Authority and PVS.


Excise Tax Act, Section 259(3)


Currently only a "public college" is a "selected public service body" and may be entitled to a rebate under this subsection. A cursory read of the definitions in this subsection should clearly indicate that to meet the definition of a public college you "must receive funding from a government or a municipality to support the ongoing delivery of educational programs to the general public". The intention of this provision is that only if a government grant is received will you be eligible for the GST rebate.. The section specifically states that "receiving payments which compensate the technical institute for training it provides to students who qualify under particular agreements with the government or municipality for educational programs" does not render you eligible for a rebate as a public college.


If you have any questions or comments please e-mail your thoughts/ideas to me.