6 August 1991 Ministerial Letter 911548 F - Child Care Expenses

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.

SUBJECT:  Child Care Expenses

We have recently considered whether or not expenses paid for a child's attendance at a day camp are subject to the limitations ($60 per week or $120 per week as the case may be) in subparagraph 63(3)(a)(iii) of the Income Tax Act.

In relation to the above situation, subparagraph 63(3)(a)(iii) refers to "expenses for a child's attendance at a boarding school or camp" . A definition of the word "camp" in the concise Oxford Dictionary is set out below:

"temporary quarters of nomads, gypsies, detainees, holiday makers, Scouts, Guides, or travellers".

In accordance with the above definition, the ordinary and every day meaning of "camp" would not include a day camp as the definition indicates that lodging is normally involved.  Accordingly, it is our view that the phrase "boarding school or camp" in subparagraph 63(3)(a)(iii) would not include a day camp with the result that the expenses paid for a Child's attendance at a day camp would not be subject to the limitations set out therein.  On a similar basis, expenses paid for a Child's attendance at a day sports school are not subject to those limitations.  We also note that this position is consistent with comments in paragraph 4(a) of Interpretation Bulletin IT-495R entitled "Child Care Expenses " .

In relation to the above position, comments have been included on page 9 of the "Child care Expenses Tax Guide" which indicate that the limitations in clauses 63(3)(a)(iii)(A) or (B) are relevant to "a boarding school, a sports school, or a camp".  As these comments suggest that those limitations are applicable to all sports schools and camps, the wording should be revised in the preparation of the Child Care Expenses Tax Guide for 1991. In addition, Form T778 should also be revised as it has been prepared on the basis of the comments on page 9 of the "Child care Expenses Tax Guide".

For your further information, we note that we have discussed the above issue in a telephone conversation with Ms A. Ouellette on July 5, 1991. Pursuant to our telephone conversation, we have enclosed correspondence relating to the above issue.

If your Division requires any further assistance with respect to the above comments, please do not hesitate to contact us.

Director Business and General Division Rulings Directorate Legislative and Intergovernmental Affairs Branch