Principal Issues: A consent order dated XXXXXXXXXX , requires the father of the child to pay $XXXXXXXXXX per month in child support but this amount may be varied annually as of XXXXXXXXXX of each year, based on the father’s annual employment income for the preceding year. The child support payable for each successive year is to be calculated on the father’s annual income based on a table annexed to the court order. A court order dated XXXXXXXXXX , orders the father to pay “support” of $XXXXXXXXXX per month . A payment order was issued to the father’s employer and payments are to be made directly to the Family Court.
1. Would the XXXXXXXXXX Consent Order that provides for automatic built-in increases in the amount of child support as of XXXXXXXXXX , come under the new tax treatment when the amount to be paid under the order changes in accordance with its stated provisions?
2. Is the new order dated XXXXXXXXXX , an order “made after April 1997” for purposes of paragraph (a) of the definition of “commencement day” in subsection 56.1(4)?
1. No, the automatic built-in increases in child support in the Consent Order are not considered to be a variation of child support.
2. The new order dated XXXXXXXXXX , has not varied the Consent Order dated XXXXXXXXXX since the increase in child support was built in to the pre-May 1997 Consent Order. The new court order dated XXXXXXXXXX , is an “order made after April 1997” for purposes of paragraph (a) of the definition of “commencement day” in subsection 56.1(4).
Reasons: See Question # 22 of #9723088 and T2020 with the Dept. of Finance and XXXXXXXXXX