Principal Issues: Whether bowling qualifies for the children's fitness tax credit.
Position: Question of fact.
Reasons: The organization offering the program will have the detailed knowledge that is necessary to determine whether or not the criteria are met.
April 10, 2007
XXXXXXXXXX
Dear XXXXXXXXXX:
I am writing in reply to your email addressed to the Right Honourable Stephen Harper, Prime Minister of Canada, asking that bowling be included as one of the sports that would qualify for the Children's Fitness Tax Credit. I received a copy of your email from the office of the Prime Minister on January 17, 2007. I apologize for the delay in responding.
The provision of the Income Tax Regulations that will define a prescribed physical activity for purposes of the credit has not yet been drafted. The Department of Finance Canada has indicated, however, 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.
While 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 appreciate the opportunity to address your concerns.
Sincerely,
The Honourable Carol Skelton, P.C., M.P.
Randy Hewlett
957-2049
2007-022217