| Health and Welfare Canada | |
| Social Policy Division | |
| Policy, Planning and Information Branch | |
| Room 1414 | File No. 5-9244 |
| Brooke Claxton Building | J.D. Jones |
| Tunney's Pasture | 957-2104 |
| Ottawa, Ontario | |
| K1A 0K9 |
Attention: Diane Morissette
January 18, 1990
Dear Sirs:
Re: Employer-Sponsored Child Care Assistance
This is in reply to your letter of December 8, 1989, wherein you requested the Department's administrative practices with respect to employer-sponsored child care assistance.
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 also not arise in the hands of such employees.
Where an employer was reimbursing employees for all or a part of the cost of private day care facilities, it is our view that the employees would be in respect of a taxable benefit in the amount of the reimbursement received.
We trust our comments will be of assistance.
Yours truly,
P.D. FUOCOfor DirectorBusiness and General DivisionSpecialty Rulings DirectorateLegislative and Intergovernmental Affairs Branch