Examples of scope of child care
3. Child care services could include services provided by:
- a babysitter
- a day care centre
- a pre-school or nursery school
- a day camp
- an educational institution for the purpose of providing before and after school care
Example of instructional or recreational aspect not detracting from “child care”
Example 6
A 7-year old boy participates in a 5 day summer dance camp for children aged 7 to 10 provided by a for-profit company. The camp runs from 8 am to 4 pm Monday to Friday. During the camp, the child is introduced to a number of different dance styles, has scheduled time for outdoor free-play and other activities each day, and is provided with a boxed lunch. The company’s staff supervises the campers and also provides the dance instruction.
The company is supplying child care services. Although the day camp involves dance instruction and other recreational activities, the primary purpose of the supply is to provide care and supervision to children 14 years of age and under for periods normally less than 24 hours per day. Therefore, the company is making an exempt supply under section 1 of Part IV of Schedule V.
Enrichment with sporting activities may not detract from “child care”
4. … With respect to any particular program, a degree of basic care and supervision is normally provided although the program may also involve activities and instruction which enrich the program. In determining whether a particular program is child care, some factors that would be considered are the age of the participating children, the qualifications of the individuals operating the program, the extent that progress is measured and goal-orientation is involved, and the time devoted to the program. For example, sports day camps for young children are generally not of an ongoing nature and it is generally recognized that there is a sufficient degree of child care even though the program is enriched by sporting activities with instruction. On the other hand, children, particularly those who are older, may participate in a sports program that is ongoing for a lengthy period of time, the instructors have qualifications or experience in a particular field, progress is regularly monitored and is goal-oriented, and sophisticated training methods are used. In this type of scenario, it is the CRA’s general view that the service provided is one of instruction as opposed to child care.
Example of exempt supervised visitation
Example 12
A court ordered that a parent should only be allowed access to their 2 children, aged 6 and 9, when a non-related person is present. A corporation provides a service where its employee supervises the children during their 4 hour visit with their parent. The employee’s role is to ensure the safety of the children during the visit. Where necessary, the employee can end the visit if it becomes uncomfortable or distressing to the children.
The corporation is making supplies of child care services. The primary purpose of the supply is to provide care and supervision to children 14 years of age or under for periods normally less than 24 hours per day. Therefore, the corporation is making exempt supplies under section 1 of Part IV of Schedule V.
Example of application of single-supply doctrine where single client (cf. various clients)
Example 13
An individual arrives at 6:45 pm to babysit children aged 7, 10, and 15 until midnight while their parents are away from the home.
Although one of the children is not 14 years of age or under, the individual is making a single supply of child care services, the primary purpose of which is to provide care and supervision to children 14 years of age or under for a period of less than 24 hours per day. Therefore, the babysitter is making an exempt supply under section 1 of Part IV of Schedule V.
Example 14
A for-profit company offers an after school program in which it provides child care services. The parents of a 7-year old, the parents of a 10-year old, and the parents of a 15-year old each enrol their child in the program.
The supply to the parents of each child is a separate supply. … The supply of child care services to the parents of the 15-year old is not exempt … .
Example of exempt double-supply of child care service
Example 22
A non-profit organization is a liaison between parents and in-home child care providers. The organization contracts with child care providers who provide child care services. The organization provides various administrative services to the child care providers in exchange for a commission. There is no employment or agency relationship between the organization and the child care providers.
A parent needing child care contacts the organization who finds an appropriate spot with a child care provider. The parent and the organization enter into a separate agreement for the supply of child care services which will be rendered by one of the in-home child care providers. The parents pay all child care services fees to the organization. From the fees paid to it, the organization keeps a 5% commission for the administrative services it provides and pays the remaining amount to the child care provider as consideration for the child care services that the organization acquires.
The supply of child care services from the in-home child care provider to the organization is exempt under section 1 of Part IV of Schedule V. The supply of child care services from the organization to the parents is also exempt under section 1 of Part IV of Schedule V. The supply of the administrative services from the organization to the child care providers provided for the 5% commission is taxable as no exempting provision applies.
