Would child care expenses qualify as such under s. 63(3) where a corporation carrying on a child care business renders child care services for their fair market value to the child of its sole shareholder and employee? CRA responded:
Under subparagraph (b)(i) of the definition, services cannot be provided by the father or mother of the child. However, there is nothing in the Act that prevents an individual from incorporating his or her business in order to provide child care services. Consequently, if a taxpayer satisfies all of the conditions for the application of section 63, the taxpayer may claim child care expenses as defined in subsection 63(3) even if the child care expenses were paid to a corporation to which the taxpayer is employed.