ELIZABETH C. SYMES V. HER MAJESTY THE QUEEN AND THE ATTORNEY GENERAL OF QUEBEC,THE CHARTER COMMITTEE ON POVERTY ISSUES AND THE CANADIAN BAR ASSOCIATION (INTERVENERS)

IACOBUCCI J. - The basic issue in this appeal is whether child care expenses, on the facts of this case, are deductible as business expenses in the determination of profit under the Income Tax Act, R.S.C. 1952, c. 148, as amended (the "Act").

(I) Facts

The appellant taxpayer, Elizabeth Symes, is a lawyer and a mother.  During the relevant period, she practised law full-time as a partner in a Toronto law firm.  During that same period, she was initially the mother of one child (in taxation years 1982, 1983 and 1984), and was later the mother of two children (in taxation year 1985).  The appellant is married.

The appellant employed a nanny, Mrs. Simpson (Simpson), during these taxation years.  Simpson's only employment function was to care for the appellant's children in the appellant's home.  During 1982, 1983 and 1984 respectively, the appellant paid Simpson $10,075, $11,200 and $13,173 to care for her one child.  During 1985, the appellant paid Simpson $13,359 to care for her two child…