Child Day-Care Services Sector

This sector comprises businesses primarily engaged in providing day-care services for infants or children, or both. Businesses in this sector may care for older children when they are not in school and may also offer pre-kindergarten educational programs. Activities in this sector include:

  • baby-sitting in own home (that is, private day-care)
  • child day-care services
  • head start centres (not formal schooling)
  • nursery or playschool
  • pre-kindergarten or pre-school (not as part of an elementary school)

The Canada Revenue Agency (CRA) consulted with industry associations to explain the Industry Campaign Approach (ICA) and to solicit their input to improve campaign correspondence. Starting in March 2017, over 15,000 letters were sent to new businesses and repeat late-filers in this subsector. The letter to new businesses conveyed information on common mistakes and provided useful tips, along with links to the CRA website where further support could be found. The letter to repeat late-filers, who are now up to date, reminded them to file their next tax return on time. That letter provided the filing due date, as well as information on late-filing penalties and interest.

Feedback received from associations in this sector has been very supportive of the ICA because of the campaign’s focus on consultation and providing information to prevent errors.

Additional Information

My Account for Individuals

  • My Account allows you to track your refund, view or change your return, check your benefit and credit payments, view your RRSP limit, set up direct deposit, receive email notifications from the CRA, and so much more.
  • If you are registered with My Account, you can also use Auto-fill my return when you file online using certified software.
  • On your mobile device? Try the MyCRA mobile app - you can securely access key parts of your tax information and manage personal details, wherever you are.

My Business Account

  • Employees and representatives can access an account on behalf of their employer or business clients. See Represent a Client.
  • Business owners (including partners, directors, and officers) can access their GST/HST, payroll, corporation income taxes, excise taxes, excise duties and other levies accounts online. What can I do on My Business Account?

Financial Performance Data (Innovation, Science and Economic Development Canada)

  • With Financial Performance Data you can view financial data based on industry averages, with an option to include your own income statement and balance sheet information in the report.

 

We're here to help!

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We're here to help!

The Canada Revenue Agency (CRA) wants to help you and your new business get your tax affairs right from the start. By avoiding common mistakes, you can be more confident that you are meeting your tax obligations.

Here are some recommendations to help you throughout the year:

Keep track of your expenses

  • Keep personal and business expense receipts separate
  • Remember that you cannot claim your own children's expenses as a business expense
  • If you use your home to run your daycare, you can claim part of your household expenses

Know your other tax responsibilities

  • Use Form T2125, Statement of Business or Professional Activities, to calculate your business expenses
  • See Guide P134, Using your home for daycare, at canada.ca/cra-forms-publications
  • Keep your business records for at least six years from the end of the tax year they relate to

Get more information

  • You may wish to talk to a tax professional about your tax situation
  • Manage your tax affairs more efficiently with the CRA's My Account by registering your business at canada.ca/my-cra-account
  • Evaluate your financial performance on Innovation, Science and Economic Development Canada's website at http://www.ic.gc.ca/eic/site/pp-pp.nsf/eng/home
  • Find out more about the CRA's Industry Campaign Approach at canada.ca/cra-industry-campaigns

Visit canada.ca/revenue-agency or call 1-800-959-5525

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