Principal Issues: In what circumstances will a receipt, issued for purposes of the Children's Fitness Tax Credit, need to contain an authorized signature?
Position: In order to ensure the timely processing of returns of taxpayers who claim the Children's Fitness Tax Credit, the CRA asks that receipts, which are printed from a computerized database and sent to taxpayers by mail, contain all relevant information pertaining to the eligible fitness expense, including an authorized signature.
2008-026700 XXXXXXXXXX François Bordeleau, Advocate March 4, 2008
Dear Madam,
Subject: Children's fitness tax credit - receipt requirements
This is further to your request of January 28, 2008 for our opinion on the issue of receipts for the children's fitness tax credit ("CFTC").
In particular, you indicated that your organization has various means of issuing receipts for CFTC purposes. One of those is to store the relevant data on a computer system, generate the receipt electronically, print it and mail it to the taxpayer who has incurred an eligible fitness expense. You therefore wish to know whether this type of receipt must contain an authorized signature.
Unless otherwise indicated, all statutory references herein are to the provisions of the Income Tax Act (the "Act").
Our Opinion
On its website, the Canada Revenue Agency ("CRA") states that "if receipts are produced electronically, an authorized signature is not required". Electronically generated receipts are those that are generated from a computer system and are sent via an electronic data transmission method (for example, a receipt is generated by a computer system and is automatically sent to a taxpayer at an email address). In such a context, the body issuing such receipts is not required to sign them since they are sent without manual intervention.
In order to allow for the timely processing of taxpayers who claim the CFTC, the CRA requires that receipts, which are printed from computer data and subsequently mailed to taxpayers, contain all information relevant to the eligible fitness expense, including the signature of an authorized person.
Best regards,
Randy Hewlett
Manager
Business and Partnerships Section
Business and Partnerships Division
Income Tax Rulings Directorate.