Précis: Ms. Phillips claimed child care expenses in the years 2003 through 2007 (the notices of reassessment were issued in 2009 but did not come to trial until late in 2018). The expenses were in respect of one of her children, Matthew, who was 3 years old in 2003 and 8 years old at the end of 2007. Her evidence was that she had a babysitter she paid in 2003-2005 named Christian Richards and in 2006 and 2007 she hired her nephew, Kevin Phillip, to provide child care. Neither individual was called to testify, although three of her older children did testify in her support. The amounts claimed were modest, ranging from $5,245 in 2005 to $1,067 in 2007. Ms. Phillips had modest means since these deductions ranged from approximately 19% to approximately 28% of her annual income (she worked as a a packer with Georgia Pacific until she was injured in 2006 and went back to school for retraining).
The Court denied any deduction for child care, allowed the opening of statute barred years (2003-2005) and imposed gross negligence penalties in each taxation year.
Phillip v. R. – TCC: Gross negligence penalties sustained against single mother claiming child care expensesPlus >