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.
Principal Issues: Whether "support" for the purposes of the Disability Tax Credit transfer only means financial support
Position: It means both financial support (involving providing money to acquire basic necessities) and non-financial support (directly providing such things as shelter, clothing, and food).
Reasons: Previously stated positions.
XXXXXXXXXX
2010-038121
Andrea Boyle, CGA
September 30, 2010
Dear XXXXXXXXXX:
Re: Support for the Purposes of the Disability Tax Credit Transfer
I am writing in reply to your email dated September 21, 2010, in which you asked whether, for the purposes of transferring an unused portion of the disability tax credit, "support" necessarily means only "financial" support.
The particular situation outlined in your email appears to relate to a factual one, involving specific taxpayers. Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Rulings, dated May 17, 2002. Where the particular transactions are completed, the inquiry should be addressed to the relevant tax services office. We are, however, prepared to offer the following general comments, which may be of assistance.
As indicated in Interpretation Bulletin IT-513 Personal Tax Credits, in general terms, support includes the provision of the basic necessities of life such as food, shelter, and clothing. In this regard, it is our view that support includes both financial and non-financial support where the term "financial support" would involve providing money to acquire the basic necessities and the term "non-financial support" would refer to directly providing such things as shelter, clothing and food.
It is a question of fact in each case to determine whether or not the actions or contributions of a particular individual are of such a nature and degree that they could be said to constitute "support" of another person. Support that does not relate to providing the necessities of life, such as, for example, visiting the dependant each day, providing moral support, preparing a meal and doing the person's laundry and/or shopping, does not entitle an individual to the disability tax credit transfer.
We trust that these comments will be of assistance.
Yours truly,
Randy Hewlett
Manager
for Director
Ontario Corporate Tax Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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