17 July 1990 Ministerial Letter 901138 F - Child Care Expense

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 Expense

This is in reply to your memorandum dated June 8, 1990 wherein you query the reference made in subparagraph 63(3)(a)(iv) of the Act to "education" as an expense that does not qualify as a child care expense for the purposes of the child care expenses deduction. You are concerned with those instances where a distinction between those services which qualify as "education" and those which qualify as "child care" may not be clear.  You have asked us to consider the example of a four-year-old child attending 24(1) school in the mornings and staying in the afternoon in daycare.

We obtained an informational pamphlet from one of 24(1) schools to assist us in determining what service they offer to the community.  24(1)

Should a particular school offer a separate or additional program of day care for children of working parents, we would see no reason for that portion of the total cost qualifying as a child care expense.  It would appear reasonable that such a school could readily identify the fee structure that pertains to its 24(1) program and those fees which relate strictly to child care.

We are of the opinion that a provincial requirement that children attend school at the age of six has no bearing on whether a child under six is in fact a participant in an educational program.

We trust the above comments are of assistance to you.

B.W. DathDirector Business and General DivisionRulings Directorate Legislative and Intergovernmental  Affairs Branch