13 December 2004 Internal T.I. 2004-0097931I7 F - Définition de Divertissement - 67.1(4) -- summary under Paragraph 67.1(4)(b)

A corporation makes available to all its employees a fitness centre that it operates on the premises of its place of business and incurs related costs such as labour and maintenance. The Directorate stated:

[I]n the context presented, the primary purpose of a corporation that makes available to its employees a fitness centre is their fitness and well-being, not their entertainment. Subsection 67.1(1) therefore does not apply to this situation.