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 Caregiver Tax Credit can be claimed for aunt or uncle of individual's spouse
Position: Caregiver tax credit cannot be claimed for aunt or uncle of individual's spouse.
Reasons: Paragraph 118(1)(c.1) only refers to the individual's aunt or uncle. Paragraphs 252(2)(e) and (f) do not extend the meaning of aunt or uncle to include the aunt or uncle of a spouse.
June 22, 1999
Client Services Division HEADQUARTERS
Halifax Tax Services Office Wayne Antle
(613) 957-2135
Attention: Mary Stewart
7-990939
Re: Caregiver Tax Credit [Proposed Paragraph 118(1)(c.1)]
This is in reply to your memorandum dated April 7, 1999 concerning the new caregiver tax credit.
You are questioning whether or not an individual can claim this credit for his spouse’s aunt, who is infirm, and lives with the individual and his wife. In your memo, you comment that the person could claim his wife’s aunt as an infirm dependant under paragraph 118(1)(d) of the Income Tax Act (the “Act”). In addition, you note that the CCH publication entitled “How To Prepare Your Income Tax Return” as well as the Enquires Probe and Response Guide, and the Form TD1, indicate that an individual may claim the caregiver amount for his spouse’s aunt. You are requesting that we confirm whether or not this is correct, and provide the legislative authority.
Proposed paragraph 118(1)(c.1) provides a tax credit for an individual who, either alone or jointly with another person, maintains a self-contained domestic establishment, and supports therein a person who is at least 18 years old, and is the individual’s child or grand-child, parent or grand-parent, brother, sister, aunt, uncle, nephew or niece. The person must be resident in Canada (except in the case of a child or grand-child) and, other than a parent or grand-parent who is at least 65 years of age, dependent by reason of mental or physical infirmity.
This new provision differs from paragraph 118(1)(d) of the Act in that it does not refer to a dependant, but rather lists, within the paragraph, the persons that may be claimed. Dependant is defined in subsection 118(6), for the purposes only of paragraphs 118(1)(d) and (e), to include the aunt or uncle of an individual or his/her spouse. Accordingly, an individual may claim a tax credit for his spouse’s aunt under paragraph 118)(1)(d) if she was over 18 years old, and dependent by reason of mental or physical infirmity.
Under proposed paragraph 118(1)(c.1), reference is only made to the individual’s aunt or uncle. These terms are defined in paragraphs 252(2)(e) and (f) of the Act to include the spouse of one’s aunt or uncle. However, the meaning is not extended to include the aunt or uncle of a person’s spouse.
Based on our review of the legislation, in our opinion an individual may not claim the new caregiver tax credit for his/her spouse’s aunt. XXXXXXXXXX.
R. Albert, C.A.
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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