The taxpayer claimed child care expenses totaling over $5,086. CRA denied the claim as the expenses were primarily after school and summer activities for their 10 and 12 year olds. These included math tutoring, chess programs, and ski classes. Expenses incurred to look after your children while working is permitted but recreational and educational programs are not.
The Tax Court concluded that the CRA cannot deny child care expenses just because they are also recreational and educational. As long as the expenses allowed the parents to work, it’s allowable. Programs during school hours and weekends were disallowed ($465) but the rest was allowed.
