Income Tax Act

Marginal note:Definitions

• 118.031 (1) The following definitions apply in this section.

  eligible expense

  dépense admissible

  eligible expense in respect of a qualifying child of an individual for a taxation year means the amount of a fee paid to a qualifying entity (other than an amount paid to a person who 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 qualifying child in a prescribed program of artistic, cultural, recreational or developmental activity and, for the purposes of this section, that cost

  • (a) includes the cost to the qualifying entity 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

    • (i) the cost of accommodation, travel, food or beverages,

    • (ii) any amount deductible in computing any person’s income for any taxation year, or

    • (iii) any amount included in computing a deduction from any person’s tax payable under any Part of this Act, for any taxation year. (dépense admissible)

  qualifying child

  enfant admissible

  qualifying child of an individual has the meaning assigned by subsection 118.03(1). (enfant admissible)

  qualifying entity

  entité admissible

  qualifying entity means a person or partnership that offers one or more programs of artistic, cultural, recreational or developmental activity prescribed for the purposes of the definition eligible expense. (entité admissible)

• Marginal note:Children’s arts tax credit

  (2) For the purpose of computing the tax payable under this Part by an individual for a 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 a qualifying child of the individual for the taxation year, the lesser of $500 and the amount determined by the formula

  C – D

  where

  C

  is 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 expense in respect of the qualifying child of the individual, 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 determined for C in respect of the qualifying child 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).

• Marginal note:Children’s arts tax credit — child with disability

  (3) For the purpose of computing the tax payable under this Part by an individual for a taxation year there may be deducted in respect of a qualifying child of the individual an amount equal to $500 multiplied by the appropriate percentage for the taxation year if

  • (a) the amount referred to in the description of B in subsection (2) is $100 or more; and

  • (b) an amount is deductible in respect of the qualifying child under section 118.3 in computing any person’s tax payable under this Part for the taxation year.

• Marginal note:Apportionment of credit

  (4) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a qualifying child, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of that qualifying child if that individual were the only individual entitled to deduct an amount for the year under this section in respect of that qualifying child, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.