Docket: 2008-1410(IT)I
BETWEEN:
KIMBERLEY ANNE BRUNETTE,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
____________________________________________________________________
Appeal heard on July 22, 2009, at Hamilton, Ontario.
Before: The Honourable Justice Patrick
Boyle
Appearances:
For the appellant:
|
The appellant herself
|
Counsel for the
respondent:
|
Ricky Tang
|
____________________________________________________________________
JUDGMENT
The appeal from the reassessments made
under the Income Tax Act with respect to the appellant’s 1999, 2000,
2001, 2002, 2003 and 2004 taxation years is dismissed in accordance with the
reasons herein.
Signed at Ottawa, Canada, this 13th day of November 2009.
"Patrick Boyle"
Citation: 2009 TCC 584
Date: 20091113
Docket: 2008-1410(IT)I
BETWEEN:
KIMBERLEY ANNE BRUNETTE,
Appellant,
and
HER MAJESTY THE QUEEN,
Respondent.
REASONS FOR JUDGMENT
Boyle J.
[1]
The issue in this
informal income tax appeal is whether Ms. Brunette was in a common-law
relationship with Marcel Vesely in the years in question. The
determination by the Canada Revenue Agency (“CRA”) that she and Mr. Vesely
were common-law partners has adversely impacted her GST credit and her Child
Tax Benefit amounts. A further issue involving child support payments was
raised at the hearing. The hearing was adjourned after hearing the common‑law
partnership evidence and argument to allow the CRA to consider the child
support issue. I am advised that the CRA now agrees that it had wrongly characterized
the taxpayer’s child support amounts as spousal support and has reassessed to
correct this.
[2]
I am wholly satisfied
that Ms. Brunette and Mr. Vesely were in a common‑law
partnership in the years in question and I will be dismissing this appeal.
[3]
The definition of
common-law partner for these purposes in subsection 248(1) of the Income
Tax Act (the “Act”) turns entirely upon whether Ms. Brunette
and Mr. Vesely cohabited in a conjugal relationship at the relevant times.
[4]
The term “cohabiting in
a conjugal relationship” is not defined in the Act for these purposes. Nonetheless,
its meaning is well-developed in the law. An extensive listing of considerations
is set out in Molodowich v. Penttinen, 17 R.F.L. (2d) 376, [1980] O.J.
No. 1904 (QL). The role of the Molodowich characteristics in determining
whether or not a conjugal relationship exists was addressed by the Supreme
Court of Canada in M. v. H., [1999] 2 S.C.R. 3. The Supreme
Court said that the characteristics of shared shelter, sexual and personal
behaviour, services, social activities, economic support, children and societal
perception may be present in varying degrees and are not all necessary. Common‑law
couples cannot escape because they do not fit precisely the “traditional
marital model”. Even sexual relationships are not a requirement, according to
the Supreme Court. The weight to be given to each of the Molodowich factors will
vary widely and almost infinitely. The approaches of the courts must be
flexible and reflect the reality that couples’ relationships, whether married
or common-law, will vary widely.
[5]
I must approach
determinations such as this with the recognition that Canadian family
relationships and personal relationships change and reflect endless different
choices that work for those involved. As courts have previously observed, we
are clearly beyond the traditional marital model. Having heard the evidence of
both Ms. Brunette and Mr. Vesely, it is clear that the relationship
they shared was exactly what the concept of cohabiting in a conjugal relationship
is trying to describe.
[6]
The parties’
relationship began when Ms. Brunette and her son moved into the apartment
across from Mr. Vesely. They became, in Mr. Vesely’s words, boyfriend
and girlfriend. A short while thereafter, she and her son moved into his
one-bedroom apartment. For some of this period Ms. Brunette and Mr. Vesely
shared the same bed, although at some point Ms. Brunette bought a separate
bed for herself which at times was in the bedroom and at times was in the living
room. They regularly made meals for one another and did one another’s laundry.
Ms. Brunette did such household tasks as dusting, cleaning and basic
maintenance and minor improvements. They dined out together and went out to
functions such as bowling, mini-golf and movies. They had sexual relations on
occasion and neither was seeing anyone else. They exchanged gifts at Christmas
and birthdays. This included him sending her roses on her birthday. They shared
personal discussions. He assisted her with her considerable personal
difficulties as well as her financial difficulties. He was named on her car
insurance as a driver of her car even though they each owned a car. They
shopped together, dined out and went out a couple of times each month.
Mr. Vesely treated Ms. Brunette’s child as he thought a father
should. Given their different financial circumstances, Mr. Vesely provided
financial support to her although she clearly contributed her money when she
had some for their joint benefit. Ms. Brunette said she assumed the
neighbours would regard them as a couple. She attended a Christmas family
gathering at his parents’ house. She sent letters to government authorities,
and had him do so as well, indicating they had been a common-law couple but had
ceased to be so at some point in 2003. I note there is no basis in the evidence
for treating their relationship as having ended in 2003 at the time specified.
[7]
They were faithful to
one another at the outset. However, the relationship began to deteriorate in
April 2003. They continued to live together through the end of 2004. She
moved out at some point in 2005.
[8]
In these circumstances,
I am satisfied that Ms. Brunette and Mr. Vesely were common-law
partners living together in a conjugal relationship. People begin to live
together, continue to do so, and stop doing so for any number of reasons. The
fact that Ms. Brunette and Mr. Vesely say they did not intend their
relationship to be treated as a common-law relationship is of little assistance
given the actual circumstances of their relationship. Their relationship must
be considered on its facts against the Molodowich characteristics of shared
shelter, sexual and personal behaviour, services, social activities, economic
support, children and societal perception. It is clear that, having regard to
those characteristics, the Brunette‑Vesely relationship was a common-law
relationship.
[9]
The taxpayer’s appeal
is dismissed.
Signed at Ottawa, Canada, this 13th day of November 2009.
"Patrick Boyle"
CITATION: 2009 TCC 584
COURT FILE NO.: 2008-1410(IT)I
STYLE OF CAUSE: KIMBERLEY ANNE BRUNETTE v. HER MAJESTY THE QUEEN
PLACE OF HEARING: Hamilton,
Ontario
DATE OF HEARING: July 22, 2009
REASONS FOR JUDGMENT BY: The
Honourable Justice Patrick Boyle
DATE OF JUDGMENT: November 13, 2009
APPEARANCES:
For the
appellant:
|
The appellant herself
|
Counsel for the
respondent:
|
Ricky Tang
|
COUNSEL OF RECORD:
For the appellant:
Name:
Firm:
For the respondent: John
H. Sims, Q.C.
Deputy
Attorney General of Canada
Ottawa, Canada