15 March 2000 External T.I. 2000-0011415 - EQUIV. TO MARRIED AMOUNT

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: In a situation in which an individual turns 18 years of age on March 3, 1999, and starts to live with a taxpayer-relative on August 1, 1999, is the taxpayer prevented from claiming the equivalent-to-married tax credit pursuant to paragraph 118(1)(b) of the Income Tax Act in respect of the individual by virtue of the fact that the individual turned 18 years of age before the date of becoming a dependent (but not by reason of mental or physical infirmity) of the taxpayer, assuming all other conditions of paragraph 118(1)(b) are otherwise met?

Position: Yes

Reasons: At no time in 1999 did the relative support the individual while the individual was under 18 years of age. The wording at any time in the year in the preamble of paragraph 118(1)(b) is modified by the wording at that time in subparagraph (i) thereof and accordingly, the individual being supported must be under 18 of age at some time while being dependent on the taxpayer.

XXXXXXXXXX 2000-001141
S. Parnanzone
March 15, 2000

Dear XXXXXXXXXX:

Re : Equivalent-to-married Tax Credit

We are replying to your request of February 25, 2000, concerning the above noted-subject.

As we understand it, you have in mind the following hypothetical situation:

A Canadian resident individual, who turns 18 years of age on March 3, 1999, starts to live and reside with a relative on August 1, 1999. The individual is wholly dependent on the relative for support but not by reason of mental or physical infirmity. The relative meets the conditions in subparagraph 118(1)(b)(i) of the Income Tax Act (i.e., an unmarried person or married person who neither supports nor lives with the spouse and is not supported by the spouse) and maintains a self-contained domestic establishment in which the relative supports the individual. Your question is whether the relative is prevented from claiming the equivalent-to-married tax credit pursuant to paragraph 118(1)(b) of the Act by virtue of the fact that the individual turned 18 years of age before the date of becoming a dependent of the relative.

In our view, the answer is "yes". The relative is not entitled to claim the equivalent-to-married tax credit because at no time in 1999 did the relative support the individual while the individual was under 18 years of age. The wording at any time in the year in the preamble of paragraph 118(1)(b) must be read together with the wording at that time in subparagraph (i) thereof for the purpose of determining whether the age requirement in clause (D) is met. In our view, the individual being supported must be under 18 years of age at some time while dependent on the taxpayer in order for the taxpayer to be able to claim the equivalent to married tax credit.

Clause 118(1)(b)(ii)(C) of the Act requires that the individual being supported be related to the taxpayer claiming the equivalent-to-married tax credit. We would mention that an individual is considered to be related for income tax purposes to a niece, nephew, aunt or uncle only in limited circumstances, as explained in paragraph 8 of Interpretation Bulletin IT-419R, Meaning of arm's length.

We trust that these comments will be of assistance to you.

Yours truly,

Roberta Albert, CA
for Director
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch

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