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1-3. The APW-couple has 1, 2 or 3 children
Child no. 1 (6 years old). The basic child tax benefit is 1,020 CAD plus 213 CAD if
there are no tax deductions for child care and the child is in the age bracket 0-7
years. The benefit is 'taxed back' at a rate of 2.5 per cent of net income above 25,921
CAD (net income here is equivalent to the gross wage income of the couple).
'Tax back': 0.025 × (51,618 - 25,921) = 642 CAD, child benefit : 1,020 + 213 -642
= 591 CAD. Compared to the situation without children the increase in disposable
income is 591 / 38,921 × 100 = 1.5 per cent with 1 child (6 years old).
Child no. 2 (3 years old). The basic child tax benefit is 1,020 CAD plus 213 CAD
just as for child no. 1. The benefit is 'taxed back' at a rate of 5 per cent of net income
when there are 2 or more children.
'Tax back': 0.05 × (51,618 - 25,921) = 1,285 CAD, child benefits: 2,040 + 426 -
1,285 = 1,181 CAD. Compared to the situation without children the increase in disp.
income is 1,181 / 38,921 × 100 = 3.0 per cent with 2 children (6 and 3 years old).
Child no. 3 (1 year old). The basic child tax benefit is 1,020 CAD plus 213 CAD just
as for child no. 1 and 2, but there is a supplement of 75 CAD for child no. 3 and
more. The 'tax back' rate is 5 per cent of net income, that is 1,285 CAD just as in the
case with 2 children. Child benefits: 3,060 + 639 + 75 - 1,285 = 2,489 CAD. Com-
pared to the situation without children the increase in disp. income is 2,489 / 38,921
× 100 = 6.4 per cent with 3 children (6, 3 and 1 year old).
4.
The couple gets their second child and has two children
There are the same 'timing-problems' as mentioned in the documentation for Den-
mark.
1. The couple has a combined parental leave of 27 weeks, 17 for the wife (including
a waiting period of 2 weeks) and 10 weeks which can be shared. If the husband