Income Tax
Deductions
Appeal from Tax Court of Canada decision (2007 TCC 578) dismissing appeal against reassessments of 2003, 2004 taxation years disallowing claims for deductions of child support payments—In 1994, appellant, spouse separated, entered into separation agreement—Payments reduced by court order in March 1997—In July 1997, appellant excused by court order from obligation to make child maintenance payments for one-year period— Appellant deducting child maintenance payments in 2003, 2004 under Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 60(b)—Whether agreement, order requiring appellant to make payments of child support amounts in 2003, 2004 has commencement day—Under Act, s. 56.1(4), “commencement day” of agreement, order defined as day agreement, order made if after April 1997—Separation agreement not having commencement day under s. 56.1(4) as entered into in 1994—As July 1997 order not changing amount, subparagraph (b)(ii) of definition not applicable, not giving separation agreement commencement day—Tax Court Judge erred in finding, by virtue of subparagraph (b)(iii) of definition of “commencement day”, July order resulted in separation agreement having commencement day of July 23, 1997—Subparagraph (b)(iii) contemplating post-1997 agreement distinct from but co-existing with pre-May 1997 agreement and providing for payment of additional child support—Appeal allowed.
Warbinek v. Canada (A-473-07, 2008 FCA 276, Ryer J.A., judgment dated September 22, 2008, 18 pp.)