OTTAWA, May 8, 2012 /CNW/ - All students should be treated equally and receive the resources they are entitled to, according to a report released today by the government of Canada's Taxpayer's Ombudsman office. The report recommends that the Canada Revenue Agency (CRA) take measures to ensure that all students eligible for the education tax credits, including those studying abroad, do indeed receive them. This has not been the case according to the Ombudsman office.
"Although education tax-credits do nothing to increase access to post-secondary education, it is clear that all students who apply for them should receive the benefits," says Roxanne Dubois, National Chairperson of the Canadian Federation of Students. "It is surprising that Canadian students studying abroad seem to have been considered ineligible to receive their tax credits and should be rectified immediately."
The government of Canada spends roughly $2.5 billion dollars annually on education-related tax credits and savings schemes such as the Registered Education Savings Plans (RESP). Although tax credits may give some students a small break after completing their studies, they have failed to alleviate the up-front burden faced by students in the wake of rising tuition fees and other post-secondary education costs.
"Billions spent on ineffective tax credits and savings schemes could be reallocated easily and allow students to overcome the financial barriers of pursuing higher education," added Dubois. "The federal government should redirect the money currently invested in tax-credits into up-front needs-based grants to ensure that students who need the most help with paying for their education are receiving support."
The Canadian Federation of Students is Canada's largest student organisation, uniting more that one-half million students in all ten provinces. The Federation and its predecessor organisations have represented students in Canada since 1927.
Roxanne Dubois, National Chairperson, 613-232-7394, [email protected]
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