ARCHIVED — Vol. 146, No. 22 — October 24, 2012

Registration

SOR/2012-218 October 5, 2012

INCOME TAX ACT

Regulations Amending the Income Tax Regulations

P.C. 2012-1330 October 4, 2012

His Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to section 221 (see footnote a) of the Income Tax Act (see footnote b), makes the annexed Regulations Amending the Income Tax Regulations.

REGULATIONS AMENDING THE INCOME TAX REGULATIONS

AMENDMENTS

1. (1) Section 1 of Schedule VIII to the Income Tax Regulations (see footnote 1) is amended by striking out the following:

American Graduate School of International Management, Glendale, Arizona
City University, Bellevue, Washington
Palm Beach Atlantic College, West Palm Beach, Florida
Palmer College of Chiropractic-West, Sunnyvale, California
Park College, Kansas City, Missouri
Philadelphia College of Bible, Langhorne, Pennsylvania
Reformed Bible College, Grand Rapids, Michigan
Sherman College of Straight Chiropractic, Spartanburq, South Carolina
Southwestern Adventist College, Keene, Texas
Springfield College, Springfield, Massachusetts
Sunbridge College, Chestnut Ridge, New York
University of Judaism, Los Angeles, California
Western Baptist College, Salem, Oregon
Western States Chiropractic College, Portland, Oregon
William Tyndale College, Farmington Hills, Michigan

(2) Section 1 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Adler School of Professional Psychology, Chicago, Illinois
Berklee College of Music, Boston, Massachusetts
Pepperdine University, Malibu, California
Rabbinical College Bobover Yeshiva Bnei Zion, Brooklyn, New York
Saint Mary’s University of Minnesota, Winona, Minnesota
Southeastern University, Lakeland, Florida

(3) Section 1 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Centenary College, Hackettstown, New Jersey
Kent State University, Kent, Ohio
Rollins College, Winter Park, Florida
State University of New York at Geneseo, Geneseo, New York
Thunderbird School of Global Management, Glendale, Arizona
University of Findlay, The, Findlay, Ohio
Woods Hole Oceanographic Institution, Woods Hole, Massachusetts

(4) Section 1 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

American Jewish University, Bel Air, California
City University of Seattle, Bellevue, Washington
Kuyper College, Grand Rapids, Michigan
Manchester College, North Manchester, Indiana
Ohr Somayach/Joseph Tanenbaum Educational Center, Monsey, New York
Palm Beach Atlantic University, West Palm Beach, Florida
Philadelphia Biblical University, Langhorne, Pennsylvania
University at Albany, State University of New York, Albany, New York

(5) Section 1 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Park University, Parkville, Missouri
Southwestern Adventist University, Keene, Texas

(6) Section 1 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Palmer College of Chiropractic-West, San Jose, California

(7) Section 1 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

University of Western States, Portland, Oregon

2. Section 2 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

University of Ulster, Newtonabbey, Northern Ireland

3. Section 4 of Schedule VIII to the Regulations is amended by striking out the following:

University of Vienna, Vienna

4. Section 8 of Schedule VIII to the Regulations is amended by striking out the following:

Weizmann Institute of Science, Rehovot

5. Section 14 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Peking University, Beijing

6. Section 16 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Pontifical University of the Holy Cross, Rome

7. (1) Section 17 of Schedule VIII to the Regulations is amended by striking out the following:

University of Sydney, The, Sydney

(2) Section 17 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Avondale College, Cooranbong
Monash University, Victoria

(3) Section 17 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Australian National University, Canberra

8. Section 18 of Schedule VIII to the Regulations is repealed.

9. (1) Section 19 of Schedule VIII to the Regulations is amended by striking out the following:

University of Natal, Durban

(2) Section 19 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

University of KwaZulu-Natal, Durban

APPLICATION

10. (1) Subject to subsections (2) to (7), these Regulations come into force on the day on which they are published in the Canada Gazette .

(2) Subsection 1(2), section 2 and subsections 7(2) and 9(2) are deemed to have come into force on January 1, 2009.

(3) Subsection 1(3) and sections 5 and 6 are deemed to have come into force on January 1, 2010.

(4) Subsections 1(4) and 7(3) are deemed to have come into force on January 1, 2011.

(5) Subsection 1(5) is deemed to have come into force on January 1, 2012.

(6) Subsection 1(6) is deemed to have come into force on January 1, 1999.

(7) Subsection 1(7) is deemed to have come into force on March 2, 2010.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Background

The Income Tax Regulations (the Regulations) are made under the authority of the Income Tax Act (the Act). Schedule VIII of the Regulations, which lists foreign universities to which a taxpayer can donate and receive tax relief in respect of that donation (“prescribed foreign universities”), is periodically updated to include newly qualified universities and remove those universities that no longer qualify to be on the list.

A corporation may, for the purposes of computing its taxable income, deduct certain gifts made to a prescribed foreign university, while an individual or trust may claim a non-refundable tax credit in respect of donations made to a prescribed foreign university.

To be considered for prescribed status, a foreign educational institution must meet all of the following conditions:

  • It maintains an academic entrance requirement of at least secondary school matriculation standing;
  • It is organized for teaching, study and research in the higher branches of learning;
  • It is empowered, in its own right, to confer degrees of at least the baccalaureate level (Bachelor or equivalent), according to academic standards and statutory definitions prevailing in the country in which the university is situated; and
  • It ordinarily includes Canadian students in their student body.

Those institutions already listed on Schedule VIII that cease to meet the above conditions are to be removed from the list of prescribed foreign universities.

Furthermore, Schedule VIII is amended to reflect changes in the legal status of prescribed foreign universities.

Issue

The Canada Revenue Agency has received submissions from foreign universities requesting to be added to or, in some cases, removed from the list of prescribed universities in Schedule VIII of the Regulations. In addition, the Canada Revenue Agency has identified certain universities that no longer qualify to be on the list, or whose references on Schedule VIII are outdated and need to be replaced.

Objectives

The objective of this regulatory action is to amend Schedule VIII of the Regulations in order to add, modify or delete from the list a certain number of universities.

Description

This regulatory action amends Schedule VIII by

  • adding the names of certain foreign universities from the United States, Northern Ireland, Italy, Australia and China that applied and qualified to be listed on Schedule VIII by meeting all of the criteria for inclusion;
  • removing the names of certain foreign universities from the United States, Australia, Austria, Croatia, and Israel that no longer qualify to be included on Schedule VIII; and
  • replacing outdated references to certain foreign universities from the United States and South Africa to reflect their current legal names.

Consultation

The amendments to the list of prescribed foreign universities are based on requests and information received from foreign universities. The universities being removed from Schedule VIII were advised of this and did not contest the proposed removal.

Rationale

These amendments are of an administrative nature, aimed at updating the list of prescribed foreign universities with current information, and they are made in accordance with the eligibility criteria set out above.

There are no additional administrative costs associated with the above-referenced amendments for taxpayers, tax practitioners, or the Canada Revenue Agency.

Implementation, enforcement and service standards

Generally, universities being added to Schedule VIII gain prescribed status effective January 1 of the year in which their complete application was received.

With respect to donations made by Canadian taxpayers to those universities listed in Schedule VIII, compliance will be ensured through the mechanisms currently in place.

Contact

Mr. Denis Césard
Director
Assessment Reviews and Adjustments Division
Individual Returns Directorate
Assessment and Benefit Services Branch
25 McArthur Avenue
Place Vanier, Tower C, Room 501
Ottawa, Ontario
K1A 0L5
Telephone: 613-941-9855
Fax: 613-957-9306
Email: Denis.Cesard@cra-arc.gc.ca

Footnote a
S.C. 2007, c. 35, s. 62

Footnote b
R.S., c. 1 (5th Supp.)

Footnote 1
C.R.C., c. 945