Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Whether bowling would be considered an activity eligible for the children's fitness tax credit.
Position: Question of fact.
Reasons: Costs associated with the registration or enrolment of a child in a program of "prescribed physical activity" will be eligible for the fitness tax credit. While Finance has not yet published the provision of the ITA that will define prescribed physical activity, it has indicated that the provision will require that the activity be ongoing, supervised, and suitable for children. Furthermore, the activity must include a significant amount of activity that will contribute to cardio-respiratory endurance plus one or more of muscular strength, muscular endurance, flexibility, or balance. The Agency will generally rely on the organization to make such determinations since it has the detailed knowledge of the particular program.
August 14, 2007
XXXXXXXXXX
Dear XXXXXXXXXX:
I am writing in reply to your email addressed to the Honourable James M. Flaherty, Minister of Finance, asking whether bowling is an activity eligible for the children's fitness tax credit. I received a copy of your email and the petitions from Minister Flaherty's office on May 4, 2007.
In general terms, the children's fitness tax credit is based on the amount paid in the year (up to a maximum of $500) by an individual as an "eligible fitness expense" in respect of his or her child under the age of 16. The phrase "eligible fitness expense" is defined in the Income Tax Act to be a fee attributable to the cost of the child's registration or enrolment in a program of prescribed physical activity.
The Department of Finance Canada has not yet published the provision of the Income Tax Regulations that will define a prescribed physical activity for purposes of the credit. It has, however, indicated in public announcements that the provision will require that the activity be ongoing (either a minimum of eight weeks duration with a minimum of one session per week or, in the case of children's camps, five consecutive days), supervised, and suitable for children. In addition, substantially all of the activities must include a significant amount of physical activity that contributes to cardio-respiratory endurance plus one or more of muscular strength, muscular endurance, flexibility, or balance. For tax purposes, the phrase "substantially all" is interpreted to mean at least 90%.
Furthermore, the Department of Finance Canada has indicated its support of the recommendation of the Public Health Agency of Canada's report "Canada's Physical Activity Guides for Children and Youth" that programs of prescribed physical activity should encourage children to strive towards at least 30 minutes of sustained moderate to vigorous physical activity per session for children under the age of 10, and 60 minutes for children 10 and older.
Although the Canada Revenue Agency (CRA) will administer the credit, it will not be making general determinations on whether a particular activity, including bowling, is either eligible or ineligible. The organization offering the program will have the detailed knowledge that is necessary to determine if these guidelines will be met. The CRA is committed to working with organizations to provide them with as much information as possible to assist them in making their own determination of whether a particular program of activity is being run within the context of these guidelines. To this end, information on the credit is available on both the CRA and the Department of Finance Canada Web sites at www.cra.gc.ca/whatsnew/fitness-e.html and www.fin.gc.ca/news06/06-084e.html, respectively. Also included on the CRA Web site at www.cra.gc.ca/whatsnew/checklist-e.html is a Children's Fitness Tax Credit Eligibility Checklist, which is designed to help organizations easily determine if a particular program should qualify for purposes of the credit.
I trust that the information I have provided will be of assistance.
Sincerely,
The Honourable Carol Skelton, P.C., M.P.
Renée Shields
(613) 957-2049
2007-023740
May 31, 2007
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