Section 118.03

Subsection 118.03(1)

Eligible Fitness Expense

Administrative Policy

12 June 2013 External T.I. 2013-0480231E5 F - Crédit pour la condition physique

weekly ski lessons with use of ski lift qualified

Minors who were under 16 at the beginning of the year registered at a ski school for ski lessons as well as use of the ski lift, with the lessons lasting nine weeks. Were the expenses incurred for the ski lessons and for the use of the ski lift are eligible expenses for physical activities for the purposes of the children's fitness tax credit? CRA responded:

[T]he registration fees for a ski course, for a maximum of nine weekly lessons, including fees paid for the use of the ski lift during the course, are "eligible fitness expenses" under subsection 118.03(1) to the extent that all other requirements of section 118.03 are met.

28 September 2007 External T.I. 2007-0241341E5 F - Crédit pour la condition physique des enfants

summer or sports camp is ineligible if not for a period of at least five consecutive calendar days

CRA indicated that a fitness camp for ringette players would not be eligible because it was not for a period of at least five consecutive calendar days.

30 April 2007 External T.I. 2007-0230441E5 F - Crédit d'impôt pour condition physique des enfants

determination as to whether the program qualifies should be made by sponsor

In the course of a general response, CRA stated that:

it will not generally indicate whether the activity qualifies for the CFTC. Rather, the entity offering a program of physical activity is in a better position to determine whether the program satisfies the specific requirements of the CFTC.

Subsection 118.03(2)

Administrative Policy

15 February 2008 External T.I. 2007-0232041E5 F - Crédit pour la condition physique des enfants

eligible expenses could include mandatory affiliation fees

Course registration and speed skate rental fees, as well as mandatory affiliation fees to the Fédération de patinage de vitesse du Québec generally could qualify as eligible expenses for skating courses offered to children aged 4 to 16.

20 February 2008 External T.I. 2008-0268151E5 F - Crédit pour la condition physique des enfants

requirement to issue amended (reduced) receipt if there is a subsequent partial refund

Regarding where an organization issues a receipt to a taxpayer in respect of an eligible fitness expense incurred in 2007, and the taxpayer's child opts out of the program and the organization issues a partial refund in 2008, CRA stated:

[T]he description of D in subsection 118.03(2) requires that the amount of the eligible expense be reduced by any reimbursement, allowance or any other form of assistance received by the taxpayer in respect of the eligible expense, unless that assistance, reimbursement or allowance is included in the taxpayer's income for the year.

Thus, where an organization issues a reimbursement for an eligible expense that was incurred in the previous taxation year … that reimbursement reduces the amount of the eligible expense and that a receipt must be issued accordingly for the year in which the expense was incurred. If a receipt was previously issued for the original amount of the eligible expense, an amended receipt will be required to be issued.

4 March 2008 External T.I. 2008-0269091E5 F - Crédit pour la condition physique des enfants

program that began before the effective date can qualify if paid for after effective date

The payment of membership or registration fees in 2007 for a qualifying program of physical activity that began in 2006 and ended in 2007 can qualify.