Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
October 29, 1992
Regina District Office Personal and
General
Section
A. Payette
Attention: K. Gieb, Enquiries (613) 957-2139
922629
19(1) (the "taxpayers")
Repayment to Saskatchewan Social Services
of Child Care Subsidy
This is in reply to your Round Trip Memorandum of August 28, 1992 in which you request our opinion of the following situation. We apologize for the delay in responding.
The taxpayers received child care subsidies from the Saskatchewan Social Services (the "Services"). In 24(1), the Services discovered that the income reported by the taxpayers was based on net income rather than gross income causing the Services to overpay the taxpayers in respect of their child care subsidy for the period prior to 24(1). The overpayment caused an understatement of the amount of child care expenses on the return of the taxpayer claiming them for the relevant years in that period. Since the taxpayers were asked to reimburse this overpayment according to a repayment schedule, you enquire
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whether these payments would qualify for child care expenses in the year in which the payments were made.
Our Opinion
The amount of child care expenses that should be claimed in those years is the amount the taxpayer is allowed to deduct after taking into consideration the amount of child care subsidy the taxpayer should have received based on gross income (i.e. after the Services discovered the taxpayers' understatement of income). The actual repayments by the taxpayers towards the overpayment received should have no bearing on this determination. This determination may involve reassessments of statute-barred years in which case you may consider applying the guidelines set out under the Fairness Package.
We trust these comments will be of assistance.
P.D. Fuoco
Chief
Personal and General Section
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
Document Disclosed Pursuant to The Access To Information Act Document Divulgué en vertu de la loi sur l'accès à l'information
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© Her Majesty the Queen in Right of Canada, 1992
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© Sa Majesté la Reine du Chef du Canada, 1992
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