| 19(1) | File No. 5-8359 |
| J.D. Jones | |
| (613) 957-2104 |
October 2, 1989
Dear Sirs:
Re: Child Care Facilities Provided by Employers
This is in reply to your letter of July 10, 1989, wherein you requested our interpretation of the Departments administrative practice with respect to child care facilities provided by employers.
We advise that, in the case where an employer has established an in-house child care facility, defrays all operating expenses of that facility and further makes such facility available to all employees gratuitously or for a minimal fee, it is our position that a taxable benefit would not arise in the hands of such employees. Additionally, in the situation where an employer leases space to provide child care facilities to its employees, defrays all operating expenses of that facility and further makes such facility available to all employees gratuitously or for a nominal fee, it is our position that a taxable benefit would also not arise in the hands of such employees.
We trust our comments will be of assistance.
Yours truly,
for DirectorBusiness and General Division Specialty Rulings DirectorateLegislative and IntergovernmentalAffairs Branch