Tax Court of Canada


Income tax

Other deductions

Enrolling children in Chinese, chess, golf and other like classes was for purpose of enabling them to work

Taxpayer had two children aged 12 and 10. Taxpayer worked generally Monday to Friday from 9 a.m. to 5:30 p.m. while spouse worked similar office hours as well as some evenings and weekends, and children attended school on full-time basis finishing at about 3 p.m. daily. Taxpayer enrolled and paid for both or any one of children to be involved in different activities after school throughout year including chess programs, math tutoring classes, Chinese language classes, ski class and summer camp as well as hiring two high school students and two university bilingual students to pick them or mind them. Minister of National Revenue reassessed taxpayer, disallowing him $5,086 for child care expenses in 2016 taxation year. Taxpayer appealed. Appeal allowed. Taxpayer was entitled to deduction for child care expenses in amount of $4,621. Section 63 of Income Tax Act generally allows taxpayer to deduct child care expenses up to $5,000 for eligible child over 7 years of age and under 16 years of age and s. 63(3)(c) limits expense that can be claimed for camp. Adopting purposed test, taxpayer’s evidence was accepted that enrolling children in Chinese, chess, golf and other like classes was for purpose of enabling them to work. Hiring high school and university students clearly fell within most basic definition of child care and were deductible. All expenses claimed were allowed except that for chess tournament and Friday ski program and camp expense claim was reduced to $250. Taxpayer’s claimed expenses were to be reduced by $465.

Kwan v. The Queen (2018), 2018 CarswellNat 5170, 2018 TCC 184, F.J. Pizzitelli J. (T.C.C. [Informal Procedure]).

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