Experts puzzle over new fitness tax credit for kids

Parents enrolling their children in organizedsports and physical activities this year should note thatsome pursuitsmay notqualify fora taxbreak, say experts.

Afitness tax benefit that kicked in Jan. 1 will allowparents to claim up to $500in registration feesper child under 16 on their 2007 taxes. The maximum refund will be about $80 per child.

But guidelines on what qualifies forthe children's fitness taxbreak don't go as far as naming activities, leaving organizations that promote sports such as golf and bowling holding their breath.

"The indications are not good that bowling will be included," said Paul Olivera, the president of the Bowling Proprietors Association of Canada.

Calgary lawyer Francis Taman said parents should consider the sweat factor.

"I think the average individual can go into this saying, if this is a mainstream sport and my kid is out there and they are sweating and working their little hearts out, that there is a very good chance this will qualify."

Bowlers, golfers want tax break

Guidelines released in December stipulate that the activity must occur at least once a week over at least eight weeks, or in the case of camps, five consecutive days, with half the time dedicated to physical activity. Memberships in clubs, associations and organizationscould alsocount.

Activities that contribute to cardio-respiratory endurance will be eligible, but the activity also has to contribute to either muscular strength, endurance strength,flexibilityor balance.

Bowlingdoesn't meetthe cardio component, said Olivera. He argues thefederal Conservatives who introduced the tax credit have forgotten the break was created to get children active, away from TVs and video games.

"For children who are obese, it may be too much of a stretch to put them into a rigorous hockey program. Maybe they need to start with less intensive sport and they can work their way up."

Terri Yamada, spokeswoman for the Royal Canadian Golf Association, is hopeful young golfers will receive the tax benefit.

"A 100-pound youth burns approximately 1,000 calories carrying his or her bag during an 18-hole game of golf. It's actually more exercise than playing basketball for two hours."

'Inclusive as possible'

Dr. Kellie Leitch, one of three experts who advised Ottawa on the credit, said parents should assume that if their child is under the age of 16 and in an activity,he or shewill qualify for the credit.

"Our intent was to be as inclusive as possible," she said.

David Perry, a senior research associate with the Canadian Tax Foundation, said parents who fail to get the credit could make a formal appeal, and if they lose, take it to court.

Perry doubts many parents would take it that far, but says sport organizations will.

"It's important in terms of dollars and cents to the organization, to the industries providing the facilities, and so on."

The federal government estimates the program will cost $160 million a year.