10 August 2009 Ministerial Correspondence 2009-0319811M4 - 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: Whether a volleyball/basketball camp held 3 days per week for 4 consecutive weeks is a qualifying program of physical activity.

Position: This activity does not qualify.

Reasons: Does not meet definition under current Regulations.

August 10, 2009

XXXXXXXXXX

Dear Colleague:

Thank you for your correspondence concerning the programs of physical activity which qualify for the children's fitness tax credit. Please accept my apology for this delayed reply.

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" for his or her child who is under the age of 16 at the beginning of the year. The phrase eligible fitness expense is defined in the Income Tax Act as a fee attributable to the cost of the child's registration in a prescribed program of physical activity.

The Income Tax Regulations define a prescribed program of physical activity for the purpose of the children's fitness tax credit to include, among other things, a weekly program, which is not part of a school's curriculum, of a duration of eight or more consecutive weeks in which all or substantially all of the activities include a significant amount of "physical activity." As well, it includes a program, which is not part of a school's curriculum, of a duration of five or more consecutive days of which more than 50% of the daily activities include a significant amount of physical activity. The expression physical activity is defined in the Regulations as a supervised activity suitable for children that contributes to cardio-respiratory endurance plus one or more of muscular strength, muscular endurance, flexibility, or balance.

In your letter, you indicate that your constituent's child was enrolled in a volleyball/basketball camp that was three days per week for four consecutive weeks. Based on the current Regulations approved by Parliament, this activity does not qualify for the children's fitness tax credit.

While the Canada Revenue Agency is responsible for administering the tax system and applying the current tax legislation as enacted by Parliament, the Department of Finance Canada is responsible for developing tax policy and amending legislation. I am therefore forwarding a copy of our correspondence to the Honourable James M. Flaherty, Minister of Finance.

I trust these comments and the referral will be of assistance.

Sincerely,

Jean-Pierre Blackburn, P.C., M.P.

c.c.: The Honourable James M. Flaherty‚ P.C.‚ M.P.

Minister of Finance
House of Commons
Ottawa ON K1A 0A6

Andrea Boyle
(613) 946-3252
2009-031981