Income Tax Severed Letters

This Week's Release

Technical Interpretation - External

16 November 2022 External T.I. 2022-0928881E5 - Fees paid for virtual camp

Unedited CRA Tags
ITA: section 63; subsection 63(3).

Principal Issues: Whether the fees paid for a virtual camp would qualify as child care expenses under section 63 of the ITA?

Position: No.

Reasons: Fees paid for a virtual camp would not likely qualify as child care expenses under section 63 because a virtual camp does not provide a sufficient degree of basic protection and safety..

15 August 2022 External T.I. 2022-0926781E5 - Scholarship exemption - part-time vs full-time

Unedited CRA Tags
56(1)(n); 56(3)(a)(i); 56(3.1)(a); 56(3.1)(b); 118.6(1); ITR 202

Principal Issues: How to calculate the scholarship exemption in the context of XXXXXXXXXX grant, namely in situations where a grant recipient is enrolled in an educational program both as a full-time student and a part-time student in the same year.

Position: A determination has to be made on a month-to-month basis as to whether a XXXXXXXXXX grant recipient is a full-time qualifying student or a part-time qualifying student in respect of the specific educational program in connection with which the grant is received.

Reasons: The definition of qualifying student in subsection 118.6(1) - which refers to a qualifying student “for a month [...] who in the month [...],” as well as our previous interpretation in document E 2015-0624271I7 of the term “program” in the context of paragraph 56(3.1)(b).

Technical Interpretation - Internal

7 September 2022 Internal T.I. 2022-0931081I7 - Retroactive support payments

Unedited CRA Tags
56.1(4) "support amount"; 60.1(3);
application of s. 60.1(3) to payments already made in the current and preceding year
CRA respects the effect of a court order providing that a lump sum payment was in satisfaction of a retroactive periodic support obligation
court order rendered a lump sum payment as being in satisfaction of a retroactively-created periodic support obligation

Principal Issues: 1) Can a court order create retroactive periodic support obligations?
2) If so, can those retroactive support obligations be deductible, if paid after or before the date of the order?

Position: 1) Yes, a court order can create retroactive periodic support obligations.
2) Yes, in certain circumstances.

Reasons: 1) It is our understanding that the courts are provided with legislative authority to make an order for support for periods before the date of the order and to frame the order such that the amounts are payable on a periodic basis.
2) Payments for spousal support that are made before the date of a court order or written agreement cannot be considered to be paid under the order or agreement, but can be deductible if they meet the requirements of 60.1(3). Amounts paid after the court order can be deductible if they meet the requirements of the definition of a "support amount"

Archive

2023
February
January
2022
December
November
October
September
August
June
April
February
January
2021
December
November
October
September
August
April
February
January
2020
December
November
October
September
August
March
February
January
2019
December
November
October
September
August
June
April
March
February
January
2018
December
November
October
September
June
April
March
February
January
2017
December
November
October
September
June
April
February
January
2016
December
November
October
September
August
July
May
April
February
January
2015
December
November
October
September
August
July
April
March
February
January
2014
December
November
October
September
August
July
June
May
April
March
February
January
2013
December
November
October
September
August
July
June
April
March
February
January
2012
December
November
October
September
August
July
May
April
March
February
January
2011
December
November
October
September
August
July
June
May
April
March
February
January
2010
December
November
October
September
August
July
June
May
April
March
February
January
2009
December
November
October
September
August
July
June
April
March
February
January
2008
December
November
October
September
August
July
June
May
April
March
February
January
2007
December
November
October
September
August
July
June
May
April
March
February
January
2006
December
November
October
September
August
July
June
May
April
March
February
January
2005
December
November
October
September
August
July
June
May
April
March
February
January
2004
December
November
October
September
August
July
June
May
April
March
February
January
2003
December
November
October
September
August
July
June
May
April
March
February
January
2002
December
November
October
September
August
July
June
May
April
March
February
January
2002-01-18 (96)
2002-01-04 (103)
2001
December
November
October
September
August
July
June
May
April
2001-04-27 (74)
2001-04-13 (106)
March
February
January
2000
December
November
October
September
August
July
June
May
April
March
February
January
1999
December
November
October
September
August
July
June
May
April
March
February
January
1999-01-22 (134)
1999-01-08 (89)
1998
December
November
1998-11-27 (72)
1998-11-13 (106)
October
September
August
July
June
May
1998-05-29 (105)
1998-05-15 (62)
1998-05-01 (49)
April
March
February
January
1997
December
November
October
September
1997-09-19 (63)
1997-09-05 (185)
August
July
June
1997-06-27 (53)
1997-06-13 (181)
May
April
March
February
January
1996
December
November
October
September
August
July
June
May
April
March
February
January
1995
December
November
October
September
August
July
June
May
April
March
February
January
1994
December
November
October
September
August
July
June
May
April
March
February
January
1993
December
November
October
September
August
July
June
May
April