Principal Issues: Whether bowling will be considered a "prescribed physical activity" for purposes of the Children's Fitness Tax Credit.
Position: Question of fact.
Reasons: While the provision of the Income Tax Regulations that will define a prescribed physical activity has not yet been drafted, the Department of Finance has indicated that the activity must 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. The Agency will generally rely on the organization to make such determinations since it has the detailed knowledge of the particular program.
March 16, 2007
XXXXXXXXXX
Dear Colleague:
I am writing in response to correspondence received from your office on January 11, 2007, and the attached letter from XXXXXXXXXX, asking that bowling be considered a "prescribed physical activity" for purposes of the Children's Fitness Tax Credit. I apologize for the delay in responding.
The provision of the Income Tax Regulations that will define a prescribed physical activity 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 is either eligible or ineligible. Since the XXXXXXXXXX has the detailed knowledge of any particular bowling program it may have in mind, it is in the best position to determine whether these guidelines will be met. The CRA is committed to working with organizations like the XXXXXXXXXX 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.
I trust that this will assist you in responding to XXXXXXXXXX.
Sincerely,
The Honourable Carol Skelton, P.C., M.P.
Randy Hewlett
957-2049
2007-022215