Provider refusing to issue a tax receipt without my SIN #

[sarahgirl]

Hello everyone!

I'm new here and reside in the province of Quebec. My baby briefly attended a home daycare for a little over a month last year but I had to take him out because he was coming home covered in bruises all over his back and the provider had no explanation as to why.

Anyhow, I recently had to ask her for income tax receipts for the two months that I paid for and she is refusing to provide them, telling me that she absolutely needs my social insurance number to do so. I'm not sure what to do at this point. My regular daycare provider never asked me for my SIN and I'm not sure how to deal with this person who is refusing to give me my tax receipt. Any help or advice would be greatly appreciated!

Thank you!

[Suzie_Homemaker]

She does not need your SIN. That's false. She is meant to include hers.

I am outside with children at moment. Give me a couple hours. I'll forward this to my son and see if he has time to draft something for you to send your provider, demanding it.

[Suzie_Homemaker]

My son sent this. He said to sent to her. FB message or e-mail is fine but in writing.


Dear CLIENT NAME

I have contacted Canada Revenue Agency in order to find out how to claim my child care costs without having to supply you with my SIN. They have advised me that it is not my SIN number required on a receipt but yours. Along with your address, full name and signature. The CRA agent mailed me the attached Guide for Home Based Child Care Providers to confirm what a tax receipt must include. The CRA Guide is attached.

With that misunderstanding cleared up, please forward my tax receipt for the 2 months of child care provided and paid for. This should have been received by end of last month at the latest.

CRA have asked me to call them back in the event this is not received by the end of the week so they can investigate from their end.

https://www.canada.ca/content/dam/cr...4/p134-17e.pdf

Kindest regards
YOUR NAME





It is a bit of a bluff in the sense CRA are unlikely to help unless she is reported for tax fraud. But hopefully, once she knows that you know it's her SIN not yours that is required, she might panic and issue your receipt. If she was planning on not declaring the income, then she might be worried about being audited.

[sarahgirl]

Thanks so much Suzie_Homemaker. I texted her the message and received no response. I think she might be planning on not declaring the payments I made. My next step will be to send her a registered letter and hopefully, with a copy of her texts refusing to issue a receipt and asking me for my SIN, as well as the copies of the cheques I wrote to her, I can submit the amount to my accountant. I feel like I'm going to be penalized for her lack of honesty.

[Suzie_Homemaker]

In over 20 years of running a home base day care, I think only about 8 times a client has been asked to send in the receipt I issued them to prove their claim. It really seems to be random about who gets a letter asking for proof of the expense.

Compared that to home based child care being the most audited self employed business across the country.

Odds are, the provider is going to be randomly audited before you as a parent are.

Personally, I would claim the expense. You can prove it by the cheques even without a receipt. In the event of being audited, some CRA agents might be sympathetic since you would also be able to show the funds leaving your bank account. With the provision on the provider's name and address, it might be enough for them to permit the expense claim and go off and audit her in more detail. While it's not something I would ever normally recommend, you have to decide if the odds of being asked for the actual receipt are worth it vs that claim being denied and you being required to pay the additional taxes from that two month period. One consideration - did you have your child in care elsewhere during the year? The max amount a family can claim i s $8,000 so it might be, with the care for the other 10 months of the year, that you already have tax receipts that cover this amount or really close to it.

While that doesn't excuse her not issuing a receipt, it at least provides you with calculated options to get your own taxes in on time. Personally, I'd call CRA and report her for tax evasion. She made her bed, let her lie in it.

[sarahgirl]

Thank you again . I do have all the copies of the cheques they cashed. I have asked myself if it would be worthwhile to pursue the issue with the provider. I will however, report this person because if they are doing it to me, odds are they're doing it to others. Also, the repetitive demand for a SIN is a huge red flag IMO.

Your point about the 8k max is also a good one. Yes, my other provider (who is wonderful) did issue receipts and it will probably cover that amount (if not more). You helped me feel a lot less stressed about the situation

[Suzie_Homemaker]

Your point about the 8k max is also a good one. Yes, my other provider (who is wonderful) did issue receipts and it will probably cover that amount (if not more). You helped me feel a lot less stressed about the situation

Well then fortunately, you don't actually need the receipt from her. If you already have receipts for the limit, then having another receipt for these two months isn't going to have any affect on your taxes. I know that's not the point but at least it's not a receipt that you will gain from anyway.

If your other provider's receipt did cover the max amount, I'd just submit that one vs including the amount that you can only prove by cheque. At least then if you do get audited, you have the paperwork to support your return. :-)