Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Would a non-resident spouse living outside of Canada qualify as a "cohabiting spouse" pursuant to section 122.6 for the purposes of a "qualified relation" and the calculation of the GST credit under 122.5?
Position TAKEN:
Yes, if not living separate and apart due to marital breakdown.
Reasons FOR POSITION TAKEN:
Legislation. Megatext correspondence #911944
November 14, 1994
Client Assistance Head Office
Ottawa District Office Rulings Directorate
D. Zion
(613) 957-8953
Attention: S. Charette
942193
Goods and Services Tax Credit (the "GST credit")
This is in response to your memorandum of August 24, 1994 in which you have asked for our views regarding whether or not a non-resident spouse, who is living outside of Canada, would qualify as a "cohabiting spouse" as defined in section 122.6 of the Income Tax Act (the Act) for the purposes of the definition of a "qualified relation" contained in subsection 122.5(1) of the Act.
You describe a situation where two individuals, who we assume are married or have entered into a similar type of conjugal relationship, are not living together with one of the spouses living outside of Canada. You are of the opinion that as the two individuals involved are not living separate and apart due to a breakdown of their marriage, then the resident individual can claim her non-resident spouse as a "qualified relation" for the purposes of the GST credit.
The definition of "qualified relation" in subsection 122.5(1) of the Act refers to a person who, at the end of the taxation year is the individual's "cohabiting spouse", as defined in section 122.6 of the Act, that is, the person "who at that time is the individual's spouse and who is not at that time living separate and apart from the individual ...". Section 122.6 of the Act goes on to state that persons will not be considered to be "living separate and apart" for the purposes of this definition unless they are doing so by reason of the breakdown of their marriage.
It is our view that the phrase "breakdown of their marriage" refers to situations where two individuals are living separate and apart as a result of marital discontent. Accordingly, we concur with your view that the individual could claim the non-resident spouse as a "qualified relation" for the purpose of determining the amount of the GST credit if the separation is not due to a breakdown of their marriage.
J.A. Szeszycki
for Section Chief
Personal and General Section
Business and General Division
Rulings Directorate
Policy and Legislation Branch
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