Beaubier
T.C.J.:
This
appeal
pursuant
to
the
Informal
Procedure
was
heard
at
Castlegar,
British
Columbia
on
June
11,
1998.
The
Appellant
was
the
only
witness.
The
assumptions
in
the
Reply
to
the
Notice
of
Appeal
read
as
follows:
7.
In
so
reassessing
the
Appellant
for
the
1994
taxation
year
and
in
so
confirming
such
reassessment,
the
Minister
made
the
following
assumptions
of
fact:
(a)
the
Appellant
was
married
to,
and
resided
with,
Mary-Ellen
Hulme
(the
“Individual”)
since
May
1977
until
December
2,
1980,
at
which
time
they
separated
from
each
other
as
a
result
of
the
breakdown
of
the
marriage;
(b)
the
Appellant
and
the
Individual
had
two
children
of
their
marriage,
namely
Joel
Thomas
Hulme
and
Jared
Hunter
Hulme
(the
Children”),
and
pursuant
to
a
written
separation
agreement
entered
into
on
April
29,
1981
(the
“Agreement”),
the
Individual
had
custody
of
the
Children
after
the
separation
and
the
Appellant
was
required
to
make
monthly
maintenance
payments
of
$200.00
to
the
Individual
for
the
support
of
each
of
the
Children;
such
monthly
maintenance
payments
were
subsequently
increased
to
$250.00
for
each
of
the
Children,
commencing
September
1994,
by
an
order
from
the
Supreme
Court
of
British
Columbia;
(c)
the
Appellant
was
in
arrears
for
the
maintenance
payments
payable
to
the
Individual
under
the
Agreement,
and
by
written
agreement
entered
into
on
February
13,
1995,
the
Appellant,
upon
making
a
payment
of
$28,500.00
(the
“Payment”)
to
the
Individual,
was
released
from
the
Individual’s
claim
for
such
maintenance
payments
in
arrears
and
was
further
released
from
any
future
obligation
on
the
maintenance
payments
to
the
Individual
under
the
Agreement;
the
Payment
was
paid
by
the
Appellant
to
the
Individual
on
December
31,
1994;
(d)
the
Appellant,
in
his
income
tax
return
filed
for
the
1994
taxation
year,
sought
to
deduct
the
Payment
in
computing
his
income
for
the
year.
In
the
course
of
his
testimony,
the
Appellant
filed
a
copy
of
an
Order
of
the
Supreme
Court
of
British
Columbia
dated
January
27,
1995
respecting
this
matter,
which
he
had
not
given
to
Revenue
Canada
due
to
difficulties
in
contacting
his
lawyer.
The
body
of
this
Order
reads:
THIS
ACTION
coming
on
for
trial
at
Vancouver,
British
Columbia
on
January
27,
1995;
AND
UPON
HEARING
Kevin
J.
Heinrichs,
Counsel
for
the
Plaintiff,
and
Karen
Maki,
Counsel
for
the
Defendant;
THIS
COURT
ORDERS
that
the
Defendant
shall
pay
to
the
Plaintiff
the
sum
of
$14,000.00
in
full
and
final
satisfaction
of
all
debts
owed
to
the
Plaintiff
on
behalf
of
the
infant
children
of
the
marriage,
namely,
Joel
Thomas
Hulme,
born
march
28,
1977;
and
Jarrod
Hunter
Hulme,
born
December
21,
1978
pursuant
to
the
Settlement
Agreement
dated
April
29,
1981
or
otherwise.
THIS
COURT
FURTHER
ORDERS
that
the
Plaintiff
shall
provide
the
Defendant
with
copies
of
the
current
and
future
school
records
of
the
children;
namely,
Joel
Thomas
Hulme,
born
march
28,
1977;
and,
Jarrod
Hunter
Hulme,
born
December
21,
1978;
and
that
the
Plaintiff
shall
provide
the
Defendant
with
current
and
future
school
photos
taken
of
the
children.
AND
THIS
COURT
FURTHER
ORDERS
that
the
trust
provisions
stipulated
in
the
Order
of
Mr.
Justice
Williamson
pronounced
December
13,
1994
in
this
action
be
removed.
The
$14,000
described
in
the
Order
is
part
of
the
$28,500
at
issue
and
constitutes
arrears
of
the
periodic
payments
which
the
Appellant
owed
on
account
of
a
previous
order
of
the
Supreme
Court
of
British
Columbia.
For
this
reason,
the
sum
of
$14,000
is
deductible
by
the
Appellant
in
1994
as
claimed.
However,
the
other
$14,500
was
paid
by
the
Appellant
to
his
former
wife
in
full
satisfaction
of
all
future
claims
for
support
of
their
children.
Thus
it
does
not
fall
within
the
support
provisions
of
the
Income
Tax
Act
and
is
not
deductible.
This
matter
is
referred
to
the
Minister
of
National
Revenue
for
reconsideration
and
reassessment
on
the
basis
that
the
Appellant
is
entitled
to
deduct
the
aforesaid
$14,000
in
computing
his
income
for
the
1994
taxation
year.
Appeal
allowed
in
part.
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