If you knew of another provider in your area that was not issuing receipts and in turn not claiming her income... bringing the going rate for care down in your area...
would you be tempted to report them?
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If you knew of another provider in your area that was not issuing receipts and in turn not claiming her income... bringing the going rate for care down in your area...
would you be tempted to report them?
Sorry but none of your business!
It will only last briefly because once she is full the rest of the people have to go somewhere else. Make a point in your interviews about how you do give receipts and keep everything above board and legal and meet standards etc. Explain to prospective clients how they will need the receipt to claim the daycare deduction on their taxes. Eventually word will spread and the other woman will have a harder and harder time of getting clients since most will want to be above board and not risk their daycare getting closed down.
What you can watch for is proof that she is taking in more than 5 daycare children or whatever is legal in your area and that would be a reportable claim as it addresses safety issues.
I have a lady in my area that simply coins herself as a "babysitter" not a "daycare provider"...she charges less and doesn't give receipts, she also doesn't claim any of this business and gets more financial support from the government because it looks like she isn't making anything...she is always full because she is more flexible with drop off/pick ups and charges less...but it is also a free for all ALL day long! I really don't know how this is legal? but she's been doing it for years...I guess it all comes down to the type of care you want for your child?! I've never thought to report her because I don't know if it is actually wrong....although it seems so, especially with me working my butt off!! haha
In Ontario, the government has implemented a "whistle blowing" incentive (so-to-speak) for individuals who report others who accept cash payment and don't claim the income. Just a little FYI
That kind of undercutting bothers me because it perpetuates the stereotype that dayhome providers are "just doing it for the easy money". I'll be honest, if it were affecting my ability to secure daycare clients, and I had concrete evidence, I would report.
It is not legal! You are legally supposed to claim all money earned in any way...whether it is "babysitting" or a daycare...or raking leaves...it doesn't matter. Without getting into what I would or would not do personally, I just have to say that legally, you are obliged to report tax fraud whether it be large or small. So, if you do not report and in the unlikely event that CRA finds out that you knew...you could also be in trouble.
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Originally Posted by DaycareLady
That's big time fraud in more ways than one. As a tax payer I would absolutely report this lady.Quote:
Originally Posted by DaycareLady
I would report it. My spouse pays a stupid amount of income tax and it irritates me that it is so hard for us to put anything away for retirement or our children's education. They take soooo much from us. Why should someone else get to cheat the system and benefit?
This is someone who is giving the cra the finger and her lower rates are not competitive to your areas industry norms. As much as we all would like to tell cra where to go sometimes (they took back my mat leave money years ago because my husband was self employed (and payed his taxes) and I was employed by another firm. They took the money saying I worked for my husbands business because I would do the banking for him!!!)
Anyway, because these tax evaders effect our economy and potentially your business, I would report.
The woman is really taking her chances on being caught by the taxman. I would bet all of her clients are claiming the childcare costs on their taxes and that's how they would be able to catch her. Unfortunately that doesn't always happen.
I understand how it makes you angry but what you know is heresay and rumours isn't it? If there is a parent you know who is upset about not receiving receipts from her, then the parent should report her. Now if she were breaking the law with 10 children in care you could see that with your own eyes and you would know the children's lives may be in danger so then I'd report that situation.