Watson,
D.T.C.C.J.:—This
appeal
was
heard
at
Sherbrooke,
Quebec,
on
January
15,
1993
using
the
informal
procedure.
It
concerns
the
appellant's
1988
taxation
year.
In
calculating
his
income
for
1988
the
appellant
deducted
$2,500
for
alimony.
This
deduction
was
disallowed
by
the
Minister
of
National
Revenue,
who
issued
a
reassessment
for
the
1988
taxation
year.
As
the
basis
for
this
reassessment,
the
Minister
relied
on
the
following
facts:
(a)
the
said
amount
of
$2,500
was
paid
by
the
appellant
to
his
former
spouse
during
the
1988
taxation
year
pursuant
to
a
divorce
decree
between
the
two
parties
on
December
2,
1988;
(b)
the
divorce
decree
provided
that
the
said
amount
of
$2,500
was
a
compensatory
allowance
due
and
payable
when
the
said
decree
was
rendered;
(c)
the
sum
of
$2,500
was
paid
by
the
appellant
to
his
former
spouse
as
a
lump
sum;
(d)
the
said
amount
of
$2,500
was
disallowed
because
that
amount
was
not
paid
in
the
year
by
the
appellant
as
alimony
or
other
allowance
payable
on
a
periodic
basis
for
the
maintenance
of
the
former
spouse
whom
he
was
living
apart
from
and
to
whom
he
was
required
to
make
the
payment.
[Translation.]
At
the
hearing
of
the
appeal,
the
appellant
admitted
paragraphs
(a)
to
(c)
and
denied
paragraph
(d).
The
point
at
issue
is
whether
the
sum
of
$2,500
which
was
disallowed
can
be
deducted
as
alimony
or
other
allowance
payable
on
a
periodic
basis
in
calculating
the
appellant's
income
for
the
1988
taxation
year.
By
the
terms
of
the
divorce
decree
dated
December
10,
1988,
filed
as
Exhibit
1-1,
the
appellant
was
required
to
pay
his
wife
“a
compensatory
allowance
of
$2,500,
due
and
payable
when
the
divorce
decree
is
rendered"
[translation].
Paragraphs
60(b)
and
(c)
of
the
1988
Income
Tax
Act,
R.S.C.
1952,
c.
148
(am.
S.C.
1970-71-72,
c.
63)
(the
"Act")
read
as
follows:
60.
Other
deductions.—
There
may
be
deducted
in
computing
a
taxpayer's
income
for
a
taxation
year
such
of
the
following
amounts
as
are
applicable:
(b)
Alimony
payments.—
an
amount
paid
by
the
taxpayer
in
the
year,
pursuant
to
a
decree,
order
or
judgment
of
a
competent
tribunal
or
pursuant
to
a
written
agreement,
as
alimony
or
other
allowance
payable
on
a
periodic
basis
for
the
maintenance
of
the
recipient
thereof,
children
of
the
marriage,
or
both
the
recipient
and
children
of
the
marriage,
if
he
was
living
apart
from,
and
was
separated
pursuant
to
a
divorce,
judicial
separation
or
written
separation
agreement
from,
his
spouse
or
former
spouse
to
whom
he
was
required
to
make
the
payment
at
the
time
the
payment
was
made
and
throughout
the
remainder
of
the
year;
(c)
Maintenance
payments.—
an
amount
paid
by
the
taxpayer
in
the
year,
pursuant
to
an
order
of
a
competent
tribunal,
as
an
allowance
payable
on
a
periodic
basis
for
the
maintenance
of
the
recipient
thereof,
children
of
the
recipient,
or
both
the
recipient
and
children
of
the
recipient
if,
at
the
time
the
payment
was
made
and
throughout
the
remainder
of
the
year,
he
was
living
apart
from
his
spouse
to
whom
he
was
required
to
make
the
payment;
For
alimony
or
maintenance
payments
to
be
included
in
the
recipient's
income
and
deducted
from
the
payer's
income,
the
latter
must
observe
certain
conditions.
In
particular,
he
must
make
periodic
payments.
I
am
satisfied
from
reading
paragraphs
60(b)
and
(c)
of
the
Act
that
the
$2,500
compensatory
allowance
is
not
deductible,
since
it
was
not
payable
periodically
but
was
"due
and
payable
when
the
divorce
decree
[was]
rendered".
The
appeal
is
dismissed.
Appeal
dismissed.
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