A number of my clients run day cares mostly for pre-school children. I notice that Home Day Cares are of particular interest to CRA . CRA is auditing prior years tax returns for self-employed day care workers. Of particular interest to CRA are what day care owners are spending on meals, crafts and toys. They are also interested in major items such as furniture, carpets and other home expenses associated to the day care business. I am hoping to start a dialogue with day care owners to find out if you have faced an audit and what was the result. CRA is telling my client (Manitoba) that the maximum they will accept for meals (breakfast, lunch and two snacks is $3.08 per day per child. I read one column that said she is spending $6 to $8 per child per day? Can you share what your cost to provide meals are per child per day? I will keep you informed as to how the conversation goes. I plan to invite a member of the federal party to comment on CRA's position.
