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: Can an individual claim the spousal amount when only moral support has been provided?
Position: No.
Reasons: The term non-financial support refers to such thing as shelter, clothing and food and was not intended to mean merely moral support.
Quebec Tax Services HEADQUARTERS
Client Assistance Division Karen Power, CA
Attention: Mario Beaulieu
7-992147
Eligibility for Spousal Amount
We are writing in reply to your letter of July 28, 1999, requesting our comments on whether a taxpayer would be entitled to the spousal amount in the following situation. We also acknowledge receipt of a copy of section 3.1 of chapter F of you "job-aid" which you have provided for our review.
Our understanding of the facts is as follows:
1. Mr. A and Mrs. A were spouses who were not living apart by reason of marriage breakdown.
2. Mr. A had been gravely ill and hospitalized for several months prior to his death in late January 1998. His income for 1998 was approximately $2,000.
3. Mrs. A's net income for 1998 was approximately $16,000 which consisted entirely of amount received after Mr. A's death.
4. Mrs. A had indicated that she had provided her husband with moral support during his illness.
As noted in letter #E9833137 dated April 23, paragraph 118(1)(a) of the Income Tax Act (the "Act") provides a tax credit "in the case of an individual who at any time in the year is a married person who supports the individual's spouse...". The word "support" is not defined in the Act and therefore, takes its ordinary dictionary meaning. The Concise Oxford Dictionary (8th Edition) defines "support" as to "...provide with a home and the necessities of life..." In general terms, support includes the provision of the basic necessities of life such as food, shelter and clothing and, in our view, support includes both financial and non-financial support. 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 and that a relationship of factual dependency could be said to exist (i.e., reliance on that support). For purposes of the spousal amount, in our view, in the absence of a marriage breakdown, the normal assumption is that the husband and wife are living together and there is mutual support. Also, the omission of the word "wholly dependent" or other similar wording in paragraph 118(1)(a) indicates that the requirement that the individual "support" his or her spouse is not solely based on financial support but would also include non-financial support. Accordingly, the income threshold for the dependent spouse appears to be a narrower financial test in paragraph 118(1)(a) of the Act to determine whether or not one spouse is supported by another for purposes of the married amount.
In our view, the term non-financial support would refer to such things as shelter, clothing and food. As a result, Mrs. A, who was only able to provide moral support, would not be entitled to the spousal amount available under paragraph 118(1)(a) of the Act.
You have also asked for our comments on the validity of section 3.1 of Chapter F of the "job-aid". Specifically section 3.1 indicates that a minimum amount of support is required in order to claim a spousal amount for non-resident individuals. For example, a taxpayer providing support to a spouse living in Hungary would need to provide at least $2,400 in order to claim the paragraph 118(1)(a) married tax credit. Given our views on non-financial support, it would be unlikely that a Canadian taxpayer would be able to provide non-financial support to a spouse who is a non-resident, living in foreign country. As a result, it is appropriate to require the Canadian taxpayer to provide a certain amount of financial support in order to be entitled to the spousal amount under paragraph 118(1)(a) of the Act.
Roberta Albert, CA
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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