Vol. 148, No. 9 — April 23, 2014

Registration

SOR/2014-81 April 4, 2014

INCOME TAX ACT

Regulations Amending the Income Tax Regulations (Universities Outside Canada)

P.C. 2014-358 April 3, 2014

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 (Universities Outside Canada).

REGULATIONS AMENDING THE INCOME TAX REGULATIONS (UNIVERSITIES OUTSIDE CANADA)

AMENDMENTS

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

• Associated Mennonite Biblical Seminary, Elkhart, Indiana
• Michigan State University, Detroit College of Law, East Lansing, Michigan
• North Central College, Naperville, Illinois
• Northwest College of The Assemblies of God, Kirkland, Washington
• Ohio College of Podiatric Medicine, Cleveland, Ohio
• Pennsylvania College of Podiatric Medicine, Philadelphia, Pennsylvania
• Philadelphia University, Philadelphia, Pennsylvania
• Pine Manor College, Chestnut Hill, Massachusetts
• Reconstructionist Rabbinical College, Wyncote, Pennsylvania
• Rensselaer Polytechnic Institute, Troy, New York
• Rochester Institute of Technology, Rochester, New York
• Rockefeller University, New York, New York
• Saint Louis University, St. Louis, Missouri
• Simmons College, Boston, Massachusetts
• South Dakota School of Mines and Technology, Rapid City, South Dakota
• Southern Illinois University of Carbondale, Carbondale, Illinois
• State University of New York at Stony Brook, Stony Brook, New York
• Stevens Institute of Technology, Hoboken, New Jersey
• Syracuse University, Syracuse, New York
• Talmudic College of Florida, Miami Beach, Florida
• Texas Woman’s University, Denton, Texas
• Union Theological Seminary, New York, New York
• University of Akron, The, Akron, Ohio
• University of Arkansas at Little Rock, Little Rock, Arkansas
• University of Hawaii, Honolulu, Hawaii
• University of Iowa, Iowa City, Iowa
• University of Maryland, College Park, Maryland
• University of Missouri, St. Louis, Missouri
• University of Oregon, Eugene, Oregon
• Washington Bible College, Lanham, Maryland
• Western Conservative Baptist Seminary, Portland, Oregon
• Western Michigan University, Kalamazoo, Michigan
• Westfield State College, Westfield, Massachusetts
• Westminster Theological Seminary in California, Escondido, California
• Wheelock College, Boston, Massachusetts
• Wright State University, Dayton, Ohio

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

Anabaptist Mennonite Biblical Seminary, Elkhart, Indiana

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

Michigan State University College of Law, East Lansing, Michigan

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

• Bacone College, Muskogee, Oklahoma
• Freed-Hardeman University, Henderson, Tennessee
• Temple University School of Podiatric Medicine, Philadelphia, Pennsylvania
• University of Alabama in Huntsville, Huntsville, Alabama

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

Western Seminary, Portland, Oregon

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

• University of Texas Health Science Center at Houston, Houston, Texas
• Western Illinois University, Macomb, Illinois

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

• Cooper Union for the Advancement of Science and Art, The, New York, New York
• Limestone College, Gaffney, South Carolina
• Loyola Marymount University, Los Angeles, California
• University of Wisconsin-Milwaukee, Milwaukee, Wisconsin
• Welch College, Nashville, Tennessee

2. (1) Section 2 of Schedule VIII to the Regulations is amended by striking out the following:

University of North London, London, England

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

University of York, York, England

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

Paris Graduate School of Management, Paris

4. Section 6 of Schedule VIII to the Regulations is amended by striking out the following:

University of Geneva, Geneva

5. Section 7 of Schedule VIII to the Regulations is repealed.

6. (1) Section 8 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Interdisciplinary Center, The, Herzliya, Israel

(2) Section 8 of Schedule VIII to the Regulations is amended by adding the following in alphabetical order:

Weizmann Institute of Science, Rehovot, Israel

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

• Queensland University of Technology, Brisbane
• University of Queensland, The, Brisbane

8. Section 19 of Schedule VIII to the Regulations is amended by striking out the following:

University of the Witwatersrand, The, Johannesburg

9. Section 22 of Schedule VIII to the Regulations is amended by striking out the following:

Victoria University of Wellington, Wellington

10. Section 24 of Schedule VIII to the Regulations is repealed.

COMING INTO FORCE

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

(2) Subsection 1(2) is deemed to have come into force on October 24, 2012.

(3) Subsection 1(3) is deemed to have come into force on September 12, 2012.

(4) Subsection 1(4) and subsection 6(2) are deemed to have come into force on January 1, 2013.

(5) Subsection 1(5) is deemed to have come into force on March 11, 2011.

(6) Subsection 1(6) is deemed to have come into force on January 1, 2011.

(7) Subsections 1(7), 2(2) and 6(1) are deemed to have come into force on January 1, 2012.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

Schedule VIII of the Income Tax Regulations (the Regulations) lists the prescribed foreign universities for which a taxpayer can receive tax relief in respect of a donation. More specifically, 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. These Regulations are made under the authority of the Income Tax Act (the Act).

The list in Schedule VIII is regularly updated to include newly qualified universities, remove those universities that no longer qualify to be on the list, and amend the name and/or address of the listed universities.

Objectives

The objective of this regulatory action is to ensure the integrity of the list of prescribed foreign universities.

Description

This regulatory action amends Schedule VIII by

• adding the names of certain foreign universities located in the United States, Israel, and England, that applied to be listed on Schedule VIII and which meet all the eligibility criteria for inclusion;
• removing the names of certain foreign universities located in the United States, India, France, Vatican City, Australia, Switzerland, England, South Africa and New Zealand that no longer meet the eligibility criteria necessary for inclusion; and
• updating the name and/or address information of certain universities located in the United States.

Consultation

The universities that have been removed from Schedule VIII were contacted and either failed to respond or did not contest the proposed removal.

“One-for-One” Rule

The “One-for-One” Rule does not apply, as there are no administrative costs to business.

Small business lens

The small business lens does not apply, as there are no costs imposed on small business.

Rationale

These amendments are of an administrative nature and are aimed at updating the list of prescribed foreign universities based on current information.

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.

These amendments are made in accordance with the above eligibility criteria.

The universities which have been removed from the list no longer meet the conditions for prescribed status.

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

Compliance with respect to donations made by Canadian taxpayers to those universities listed in Schedule VIII will be ensured through existing mechanisms.

Contact

Denis Césard
Director
Assessment Reviews and Adjustments Division
Canada Post Place
750 Heron Road, 6th floor
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