20 July 2000 External T.I. 2000-0029455 - ONTARIO TAX CREDITS FOR DECEASED SPOUSE

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: Calculation of the Ontario tax credits when one spouse dies in the year.

Position: If a spouse died in 1999, the surviving spouse may claim the Ontario tax credits on his or her return. However, the surviving spouse cannot claim an additional sales tax credit for the deceased spouse. In this situation, it explains that the surviving spouse should only use his or her net income when calculating the "income for Ontario tax credits."

Reasons: Based on the "Information Sheet About Ontario Tax Credits"

XXXXXXXXXX 		J. Gibbons, CGA
		2000-002945
July 20, 2000

Dear XXXXXXXXXX:

We are replying to your facsimile of May 31, 2000, in which you requested a "ruling" with respect to a notice of assessment issued for XXXXXXXXXX (the "Taxpayer"). As we understand it, you are questioning the fact that the Taxpayer's claim for the Ontario property and sales tax credit (OPSTC) was denied on his assessment. In this regard, you wish to know how the rules for "involuntary separation" apply when one spouse dies while the married couple are occupying separate principal residences for medical purposes.

You should be aware that questions concerning a taxpayer's assessment notice should be directed to the taxation centre that completed the assessment, which, in the case of the Taxpayer, is the Sudbury Taxation Centre. For taxpayers' convenience, a toll-free number is provided on all notices of assessment. Nonetheless, for your benefit, we have provided some comments on the application of the rules for the Ontario property and sales tax credits. However, please note that our comments are of a general nature only, and should not be construed as constituting an opinion on the Taxpayer's actual notice of assessment. Further, you should be aware that we have not reviewed the Taxpayer's return.

According to the "Information Sheet About Ontario Tax Credits," which is published by the Agency to provide additional information about Ontario tax credits, if a spouse died in 1999, the surviving spouse may claim the Ontario tax credits on his or her return. However, the surviving spouse cannot claim an additional sales tax credit for the deceased spouse. In this situation, it explains that the surviving spouse should only use his or her net income when calculating the "income for Ontario tax credits."

We trust that these comments will be of assistance.

Yours truly,

John Oulton
for Director
Business and Publications Division
Income Tax Rulings Directorate

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