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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues:
Whether grandmother residing with daughter and granddaughter can claim Amount for an Eligible Dependent under paragraph 118(1)(b) if daughter claims Canada Child Tax Benefit and GST Credit.
Position TAKEN:
Yes.
Reasons FOR POSITION TAKEN:
Although a question of fact, the grandmother can meet the requirements of paragraph 118(1)(b) and is not restricted by subsection 118(4). Daughter can still meet requirements for CCTB and GSTC.
April 29, 2003
Elaine Armstrong-Kyne HEADQUARTERS
Client Services Division T. Young
Toronto Call Centre (613) 952-1506
2003-001406
Paragraph 118(1)(b) - Amount for an Eligible Dependent
We are replying to your email of April 17, 2003, concerning the Amount for an Eligible Dependent ("AED") credit. We also acknowledge our telephone conversation (Armstrong-Kyne/Young) of the same date.
You have described the following factual situation where a taxpayer wishes to claim the AED credit pursuant to paragraph 118(1)(b) of the Income Tax Act (the "Act") in respect of her infant granddaughter:
? The grandmother houses and cares for her adult daughter and granddaughter.
? The grandmother has no spouse or common-law partner.
? The daughter has been claiming the Canada Child Tax Benefit ("CCTB") and GST Credit ("GST Credit").
? The daughter has not claimed the granddaughter and no other person is making a claim pursuant to paragraph 118(1)(b) for the same self-contained domestic establishment.
You have asked us if there is anything in the Act that would prohibit the grandmother from claiming her granddaughter.
We see no provision in the Act that prevents the grandmother from claiming the AED pursuant to paragraph 118(1)(b) of the Act. The grandmother's claim of the AED does not prevent the daughter from claiming the CCTB and GST Credit in respect of the granddaughter, providing she is otherwise entitled to make the claims.
If you have any questions or if we may be of any assistance, do not hesitate to contact Terry Young at (613) 952-1506.
John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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