Date:
20021213
Docket:
2001-4225-IT-I,
2001-4226-IT-I
BETWEEN:
PENNY
MORAN,
DOUG
MORAN,
Appellants,
and
HER MAJESTY
THE QUEEN,
Respondent.
Reasons
for Judgment
Little,
J.
A.
FACTS
[1]
The above appeals were heard in Regina, Saskatchewan, on common
evidence.
[2]
The Appellants were married in 1980.
[3]
Two children were born of the marriage:
Ryan
-
December 1981
Kristen
-
February 1990
[4]
The Appellant, Doug Moran, maintains that he and his wife were
encountering marital problems and in an attempt to resolve these
problems Doug Moran and his wife separated on a number of
occasions.
[5]
The Appellant, Doug Moran, maintains that in the 1997, 1998
and 1999 taxation years he and his wife lived separately and
apart during the following periods:
(a)
1997 - 3½ months - March, April and May and part of
June;
(b)
1998 - 3 months - February, March and April;
(c)
1999 - 3½ months - September, October and November and
part of December.
[6]
When the Appellant filed his income tax returns for the 1997,
1998 and 1999 taxation years the Appellant did not report Penny
as his spouse.
[7]
In filing his income tax returns for the 1997, 1998 and 1999
taxation years the Appellant claimed child support payments on
the basis that he and Penny had encountered a breakdown of the
marriage in each of the 1997, 1998 and 1999 taxation years, i.e.
in determining eligibility for child tax credits, the Appellant,
Doug, did not combine his income with the income of
Penny.
[8]
The Appellant, Doug, also received G.S.T.C. payments in 1997,
1998 and 1999.
[9]
The Minister reassessed the Appellant, Penny, for the 1997, 1998
and 1999 taxation years to disallow her deduction for child
support expenses.
B.
ISSUES
[10] The issues
before the Court for Doug Moran are:
1.
Whether Doug Moran is entitled to deduct the child care expenses
when calculating his taxable income for the 1997, 1998 and 1999
taxation years; and
2.
Whether Doug Moran is entitled to Goods and Services Tax Credits
in excess of the amounts allowed by the Minister for the relevant
years.
[11] The issues
before the Court for Penny Moran are:
1.
Whether Penny Moran is entitled to deduct the child care expenses
when calculating her taxable income for the 1997, 1998 and 1999
taxation years;
2.
Whether the Appellant is entitled to include an amount for
equivalent-to-spouse when calculating her non-refundable tax
credits for the 1998 and 1999 taxation years;
3.
Whether the Appellant is entitled to child tax benefits in excess
of the amounts allowed by the Minister for the relevant years;
and
4.
Whether the Appellant is entitled to Goods and Services Tax
Credits in excess of the amounts allowed by the Minister for the
relevant years.
C.
ANALYSIS
[12] As noted
above, the Appellants claimed that there was a marriage breakdown
for three months or more in each of the 1997, 1998 and 1999
taxation years.
[13] After
hearing the testimony of the Appellants I have reached the
following conclusions:
(a)
Throughout the 1997, 1998 and 1999 taxation years the Appellants
lived together in the same residence with their two
children;
(b)
Each of the Appellants testified that the Appellant, Doug, lived
separate and apart, on a temporary basis, for approximately three
months in each of the 1994, 1995, 1996, 1997, 1998 and 1999
taxation years;
(c)
The Appellants resided together with their children at the end of
each of the 1997, 1998 and 1999 taxation years;
(d)
Throughout the 1997, 1998 and 1999 taxation years the Appellants
shared most of the financial responsibilities of the household in
which they and the children resided;
(e)
Throughout the 1997, 1998 and 1999 taxation years the Appellants
shared the parental responsibilities for the care and upbringing
of their children. The Appellants testified that they jointly
accompanied their children to restaurants, church events, soccer
and hockey games, etc.; and
(f)
Throughout the 1997, 1998 and 1999 taxation years the Appellants
shared property and resources. The Appellants testified that they
owned their home as joint tenants at Coronation Park.
[14] Based on
the testimony of the Appellants I have concluded that the
temporary absences of the Appellant, Doug Moran, did not
constitute a marriage breakdown. It therefore follows that the
Minister's reassessments were issued on a proper
basis.
[15] The appeals
are dismissed.
Signed at
Vancouver, British Columbia, this 13th day of December
2002.
J.T.C.C.
COURT FILE
NO.:
2001-4225(IT)I
STYLE OF
CAUSE:
Penny Moran and
Her Majesty the Queen
PLACE OF
HEARING:
Regina, Saskatchewan
DATE OF
HEARING:
November 21, 2002
REASONS FOR
JUDGMENT BY: The Honourable Judge L.M.
Little
DATE OF
JUDGMENT:
December 13, 2002
APPEARANCES:
Counsel for
the Appellant: The Appellant herself
Counsel for
the
Respondent:
Anne Jinnouchi
COUNSEL OF
RECORD:
For the
Appellant:
Name:
Firm:
For the
Respondent:
Morris Rosenberg
Deputy Attorney General of Canada
Ottawa, Canada
COURT FILE
NO.:
2001-4226(IT)I
STYLE OF
CAUSE:
Doug Moran and
Her Majesty the Queen
PLACE OF
HEARING:
Regina, Saskatchewan
DATE OF
HEARING:
November 21, 2002
REASONS FOR
JUDGMENT BY: The Honourable Judge L.M.
Little
DATE OF
JUDGMENT:
December 13, 2002
APPEARANCES:
For the
Appellant:
The Appellant himself
Counsel for
the
Respondent:
Anne Jinnouchi
COUNSEL OF
RECORD:
For the
Appellant:
Name:
Firm:
For the
Respondent:
Morris Rosenberg
Deputy Attorney General of Canada
Ottawa, Canada
2001-4225(IT)I
BETWEEN:
PENNY
MORAN,
Appellant,
and
HER MAJESTY
THE QUEEN,
Respondent.
Appeals
heard on common evidence with the appeals of Doug Moran
(2001-4226(IT)I) on November 21, 2002 at Regina,
Saskatchewan, by
the
Honourable Judge L.M. Little
Appearances
For the
Appellant:
The Appellant herself
Counsel for
the
Respondent:
Anne Jinnouchi
JUDGMENT
The appeals from the assessments made under the Income Tax
Act for the 1997, 1998 and 1999 taxation years are
dismissed.
Signed at
Vancouver, British Columbia, this 13th day of December
2002.
J.T.C.C.
2001-4226(IT)I
BETWEEN:
DOUG
MORAN,
Appellant,
and
HER MAJESTY
THE QUEEN,
Respondent.
Appeals
heard on common evidence with the appeals of Penny Moran
(2001-4225(IT)I) on November 21, 2002 at Regina,
Saskatchewan, by
the
Honourable Judge L.M. Little
Appearances
For the
Appellant:
The Appellant himself
Counsel for
the
Respondent:
Anne Jinnouchi
JUDGMENT
The appeals from the assessments made under the Income Tax
Act for the 1997, 1998 and 1999 taxation years are
dismissed.
Signed at
Vancouver, British Columbia, this 13th day of December
2002.
J.T.C.C.
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