If you provide a scholarship, bursary or fellowship to an employee's family member, or if you are an educational institution that offers free courses or reduced tuition fees to an employee's family member, include the value of the benefit in the employee's income only if:

• the benefit is provided in lieu of salary, wages or other remuneration paid to the employee;
• you are not dealing at arm's length with the employee.

The amounts are considered to be a taxable benefit for the family member. You have to file an RL-1 slip (see courtesy translation RL-1-T) for the family member and include the fair market value (FMV) of the benefit in box O of the slip.

If you are providing a scholarship, bursary or fellowship, you also have to enter “RB” in the “Code (case O)” box of the slip.