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:
Whether two unrelated individuals are related for the purposes of the Income Tax Act through the application of the provisions contained in sections 251 and 252 of the Act where they marry two brothers.
Position TAKEN:
Yes the two individuals are related.
Reasons FOR POSITION TAKEN:
In our view, the two individuals (A and B) are related by marriage under paragraph 251(2)(a) of the Act. Paragraph 251(6)(b) of the Act states that persons are connected by "marriage if one is married to the other or to a person who is so connected by blood relationship to the other". Given that individual A's husband is related by blood to his sister-in-law by virtue of paragraph 252(2)(c) of the Act, then by marriage individual A is also related to individual B.
Analysis similar to E3M05840 - CICA 1193 Round Table and 5-6927.
950876
XXXXXXXXXX D. Zion
Attention: XXXXXXXXXX
August 2, 1995
Dear Sirs:
Re: Related Persons
We are writing in response to your letter of March 16, 1995, with respect to the determination of whether or not two individuals are related within the meaning of subsection 251(2) of the Income Tax Act (the Act). We apologize for the delay in replying.
You have asked us to confirm your view that two individuals, Spouse One who is married to Brother One and Spouse Two who is married to Brother Two, are related for the purposes of the Act. For the purpose of our response, we have made the assumption that, prior to their marriages, Spouse One and Spouse Two were not related.
Pursuant to paragraph 251(2)(a) of the Act, two individuals are related if they are connected by blood relationship, marriage or adoption. Under paragraph 251(6)(a) of the Act, two individuals are connected by blood relationship if one is the child of the other or one is the brother or sister of the other. Brother One and Spouse Two are connected by blood relationship because the definition of brother contained in subparagraph 251(2)(b)(i) of the Act includes a brother of the taxpayer's spouse. Thus, given that Spouse One's husband, Brother One, is connected by blood relationship to Spouse Two, then by virtue of 251(6)(b) of the Act Spouse One and Spouse Two are connected by marriage because Spouse One is married to a person (Brother One) who is so connected by blood relationship to the other (Spouse Two). Accordingly, we concur that Spouse One and Spouse Two are related pursuant to paragraph 251(2)(a) of the Act by virtue of their connection by marriage pursuant to paragraph 251(6)(b).
We trust our comments have been of assistance.
Yours truly,
P.D. Fuoco
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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