Bill C-416
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2nd Session, 40th Parliament,
57-58 Elizabeth II, 2009
house of commons of canada
BILL C-416
An Act to amend the Income Tax Act (fitness)
R.S., c. 1 (5th Supp.)
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1. The Income Tax Act is amended by adding the following after section 118.03:
Definitions
118.04 (1) The following definitions apply in this section.
“eligible fitness expense”
« dépense admissible pour activités physiques »
« dépense admissible pour activités physiques »
“eligible fitness expense” in respect of an individual for a taxation year means the amount of a fee paid to a person or partnership that offers one or more fitness programs (other than an amount paid to a person that is, at the time the amount is paid, the individual’s spouse or common-law partner or another individual who is under 18 years of age) to the extent that the fee is attributable to the cost of registration or membership of the individual or the individual’s spouse or common-law partner in a fitness program and, for the purposes of this section, that cost
(a) includes the cost to the person or partnership of the program in respect of its administration, instruction, rental of required facilities, and uniforms and equipment that are not available to be acquired by a participant in the program for an amount less than their fair market value at the time, if any, they are so acquired; and
(b) does not include the cost of accommodation, travel, food or beverages.
“fitness program”
« programme d’activités physiques »
« programme d’activités physiques »
“fitness program” means any of the following programs involving any supervised activity that contributes to cardio-respiratory or muscular endurance and improved strength, flexibility or balance that is:
(a) a weekly program, that is not part of a school’s curriculum, of a duration of eight or more consecutive weeks in which all or substantially all of the activities include a significant amount of physical activity;
(b) a program, that is not part of a school’s curriculum, of a duration of five or more consecutive days of which more than 50% of the daily activities include a significant amount of physical activity;
(c) a program, that is not part of a school’s curriculum, of a duration of eight or more consecutive weeks, offered by a club, association or similar organization (in this section referred to as an “organization”) in circumstances where a participant in the program may select amongst a variety of activities if
(i) more than 50% of those activities offered by the organization are activities that include a significant amount of physical activity, or
(ii) more than 50% of the time scheduled for activities offered in the program is scheduled for activities that include a significant amount of physical activity; or
(d) a membership in an organization, that is not part of a school’s curriculum, of a duration of eight or more consecutive weeks if more than 50% of all the activities offered by the organization include a significant amount of physical activity.
Fitness tax credit
(2) For the purpose of computing the tax payable under this Part by an individual for a taxation year, except where the amount has already been deducted under subsection 8(1) for the taxation year, there may be deducted the amount determined by the formula
A × B
where
A is the appropriate percentage for the taxation year; and
B is the total of all amounts each of which is, in respect of an individual for the taxation year, the lesser of $500 and the amount determined by the formula
C - D
where
C is the total of all amounts each of which is an amount paid in the taxation year by the individual, or by the individual’s spouse or common-law partner, that is an eligible fitness expense, and
D is the total of all amounts that any person is or was entitled to receive, each of which relates to an amount included in computing the value of C that is the amount of a reimbursement, allowance or any other form of assistance (other than an amount that is included in computing the income for any taxation year of that person and that is not deductible in computing the taxable income of that person).
2. (1) The description of C in subsection 118.61(1) of the Act is replaced by the following:
C is the lesser of the value of B and the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118, 118.01, 118.02, 118.03, 118.04, 118.3 and 118.7);
(2) Paragraph 118.61(2)(b) of the Act is replaced by the following:
(b) the amount that would be the individual’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under this section and any of sections 118, 118.01, 118.02, 118.03, 118.04, 118.3 and 118.7).
3. Subparagraph 118.8(b)(ii) of the Act is replaced by the following:
(ii) the amount that would be the spouse’s or common-law partner’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under section 118, 118.01, 118.02, 118.03, 118.04, 118.3, 118.61 or 118.7).
4. The description of B in paragraph 118.81(a) of the Act is replaced by the following:
B is the amount that would be the person’s tax payable under this Part for the year if no amount were deductible under this Division (other than an amount deductible under any of sections 118, 118.01, 118.02, 118.03, 118.04, 118.3, 118.61 and 118.7), and
5. Subparagraph 118.91(b)(i) of the Act is replaced by the following:
(i) such of the deductions permitted under subsections 118(3), (10) and 118.6(2.1) and sections 118.01, 118.02, 118.03, 118.04, 118.1, 118.2, 118.5, 118.6, 118.62 and 118.7 as can reasonably be considered wholly applicable, and
6. Section 118.92 of the Act is replaced by the following:
Ordering of credits
118.92 In computing an individual’s tax payable under this Part, the following provisions shall be applied in the following order: subsections 118(1) and (2), section 118.7, subsections 118(3) and (10) and sections 118.01, 118.02, 118.03, 118.04, 118.3, 118.61, 118.5, 118.6, 118.9, 118.8, 118.2, 118.1, 118.62 and 121.
7. Section 118.94 of the Act is replaced by the following:
Tax payable by non-residents (credits restricted)
118.94 Sections 118, 118.01, 118.02, 118.03, 118.04 and 118.2, subsections 118.3(2) and (3) and sections 118.6, 118.8 and 118.9 do not apply for the purpose of computing the tax payable under this Part for a taxation year by an individual who at no time in the year is resident in Canada unless all or substantially all of the individual’s income for the year is included in computing the individual’s taxable income earned in Canada for the year.
8. Paragraph 118.95(a) of the Act is replaced by the following:
(a) such of the deductions as the individual is entitled to under subsections 118(3) and (10) and sections 118.01, 118.02, 118.03, 118.04, 118.1, 118.2, 118.5, 118.6, 118.62 and 118.7 as can reasonably be considered wholly applicable to the taxation year, and
9. Paragraph 127.531(a) of the Act is replaced by the following:
(a) an amount deducted under subsection 118(1), (2) or (10), 118.01(2), 118.02(2), 118.03(2), 118.04(2) or 118.3(1) or any of sections 118.5 to 118.7 in computing the individual’s tax payable for the year under this Part; or
10. Clause 128(2)(e)(iii)(A) of the Act is replaced by the following:
(A) under section 118, 118.01, 118.02, 118.03, 118.04, 118.2, 118.3, 118.5, 118.6, 118.8 or 118.9,
Published under authority of the Speaker of the House of Commons
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