3 July 2007 Ministerial Correspondence 2007-0240891M4 - Children's Fitness Tax Credit

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: Will discounted program fees made available to low-income families affect an individual's eligibility for the children's fitness tax credit?

Position: No.

Reasons: Eligibility is not affected. However, because the formula for calculating the fitness tax credit makes reference to 'an amount paid in the tax year by an individual, only the amount actually paid may be used to calculate the credit.'

XXXXXXXXXX

Dear Colleague:

I am writing in reply to the email received from your office on June 11, 2007, on behalf of one of your constituents, concerning the children's fitness tax credit. In particular, your constituent is asking whether a discounted program fee made available to low-income families would affect an individual's eligibility for the credit.

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. In describing how to calculate the credit, the Income Tax Act makes reference to "an amount paid in the tax year by the individual." Accordingly, it would not be in accordance with the Act for an individual to calculate the credit based on an amount that includes any portion of a registration fee that he or she did not pay.

I trust my comments will assist you in replying to your constituent.

Sincerely,

The Honourable Carol Skelton, P.C., M.P.

Renée Shields
(613) 957-2049
2007-024089
June 19, 2007