Fraud

[TinyTwigs]

http://montrealgazette.com/news/loca...-daycare-fraud



I thought I would add this article that I found online. I understand but I don't at the same time lol!! Can someone please explain what the heck is going on with this daycare business!

[Suzie_Homemaker]

Limited information in that link.

Best guesses as to what is happening..

1. Day care providers are writing receipts for each other claiming to have each other's children in their care. So, if a day care is limited to 5 children including her own, they take on 3 day care clients. Another provider in the same situation does the same. Normally, own children don't bring in income and can't be claimed as business expenses. By pretending they have each others they can claim food and other expenses for all.

2. Similar to above but worse, no money exchanges hands and children stay in own homes. Day care provider writes receipt for income of other providers child who she hasn't had, maybe with false SIN or transposed numbers or maybe without a SIN and provider then claims back child care fees they haven't actually paid out from taxes.

3. Maybe they write each other receipts for items advertised on Kijiji allowing day care provider to claim for toys and equipment they don't have/didn't buy.

[Van]

Tiny twigs are you in Quebec?
it was interesting information about the raids and also I never heard of July 1st being called Moving Day as it is called in Quebec

[TinyTwigs]

Tiny twigs are you in Quebec?
it was interesting information about the raids and also I never heard of July 1st being called Moving Day as it is called in Quebec

No I am in Ontario it just showed up on my facebook feed

[kindertime]

Suzie is right in her guesses. They didn't say in any of the reports I read, but these are the most likely options.

Fraud in daycare is big business in Quebec. In 2009, the Minister for the Famillies in QC, Tony Tomassi was giving out daycare licences in exchange for money. He plead guilty and was sentenced to community service last year.

In Quebec, a daycare center or a home daycare provider has two options. Be subsidized or not. If they choose the subsidy, the parents pay the $7.30/day and the daycare gets the rest of the cost in subsidy. (Centers get about $60/day, we HCPs get close to $28.) Subsidized HCPs are also unionized so this amount is set in our contract.

If the daycare choses to be not subsidized, they can still get a licence and be "recognized." Theoretically they get inspected by the gov't. but receive no money from the government, just fees from parents. This is where the fraud comes in. Parents who use a private daycare at full fee are eligible for a refund at the end of each month for most of their daycare fees. The amount of the refund is dependant on the parent's income, but can easily work out to the parents paying less than they would in the subsidized system. Getting the right tax receipt can be worth a lot.

Just as an FYI, a person who wants the do daycare in their house, can be completely legal without being "recognized" (licenced) and subsidized as long as there are 6 or fewer children. If she wants to have more, she has to be recognized. We can have up to 9 under 5yo. I have 6 spaces and 2 of them are allowed to be 18mths and under. I work by myself. If I went to 9 children, I would have to have an assistant and 4 kids could be under 18mths. Just recently, the government backed down on the provider's kids issue, too. We are now allowed to have a full daycare and our own kids (school aged - over 5yo) in the house at the same time as long as there is a separate adult looking after the provider's kids. Potentially, a lot of people in the house!

[Suzie_Homemaker]

I wonder many times how the Quebec $7 fee worked out. It interesting to know. Thank you.

It lot more children allowed than many provinces. No wonder fraud amount so high.