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:
An individual has asked for clarification on support payments received from her ex-husband from 1991 to 1997. From her letter it is unclear whether child support was payable pursuant to a court order.
Position TAKEN:
Provided general information on pre-May 97 child support payments.
Reasons FOR POSITION TAKEN:
The information provided is brief and unclear. Since the transactions have already taken place no ruling can be given.
XXXXXXXXXX 5-990063
D. Miller
March 29, 1999
Dear XXXXXXXXXX:
Re: Child Support Payments
This is in reply to your fax of November 27, 1998, regarding your 1991 to 1997 income tax returns, which was forwarded to the Rulings Directorate as you requested an official ruling. We understand that you are receiving child support payments pursuant to an interim court order, however, your husband did not return to court, in accordance with the interim order, to resolve the child support issues. You wish to know if the child support is taxable.
Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R3, dated December 30, 1996. Where the particular transactions are completed, as in this case, the enquiry should be dealt with by the relevant tax services office (“TSO”). However, we are prepared to offer the following general comments.
Child support payments made pursuant to a court order made before May 1997, regardless of whether it is an interim order or not, are generally taxable to the recipient and deductible by the payer. Where the interim court order only requires child support payments to be made for a particular period of time, then any payments made after that time would not be made pursuant to the court order and would generally not be taxable/deductible.
Since we have not been provided with a copy of the interim court order, or any details in respect thereof, we cannot provide any definitive comments with respect to your situation. If you require further assistance, you should provide the Ottawa TSO with a copy of the interim court order. We would be glad to assist the TSO should they so request.
We trust that these comments will be of some assistance.
Yours truly,
Jim Wilson
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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