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Tax Court of Canada Rules that Taking Online Distance Course is not Commuting
The Tax Court of Canada ruled that taking an online course at a distant university does not constitute a "commute" to the university. The appellant had completed a distance learning course at a university in Chicago through the Internet. She claimed a tax credit for the tuition fees, which was denied in a reassessment of her tax return. She appealed the decision, arguing that the word "commute" under s. 118.5 of the Income Tax Act has evolved to include "telecommute". In dismissing the appeal, the court held that completing courses through the exchange of information via the Internet is not the same as physically traveling back and forth between Canada and the U.S., and that if Parliament had intended the tax credit under s. 118.5 to apply to online distance courses, it would have stated that in the provision. However, the court suggested that it might be time for Parliament to re-examine the provision in light of the fact that the Internet has transformed the nature of education and work.
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