23 January 1984 Income Tax Severed Letter

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.

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J.A. MacFarlane 995-2455

January 23, 1984

Dear Sir:

This is in reply to your letter of January 3, 1984 wherein you requested our comments as to whether alimony or maintenance payments made pursuant to a United Kingdom Court Order by a Canadian resident to a former spouse who is a resident of the United Kingdom would be deductible in calculating the Canadian resident's income for tax purposes and whether withholding tax would be exigible on the payment.

Without knowing the exact nature of the payments, we cannot offer an opinion as to whether they would be deductible in calculating the Canadian resident's income for tax purposes. We enclose IT-118R "Alimony and Maintenance" and refer you to paragraphs 1 and 2 thereof for a description of the nature of deductible payments. In our opinion the "competent tribunal" referred to in paragraphs 1.(c) and 2.(c) need not necessarily be Canadian.

Pursuant to paragraph 4 of Article XVII of the Canada-United Kingdom Income Tax Convention, no withholding tax is exigible on alimony, maintenance or similar payments made by a Canadian resident and received by a resident of the United Kingdom.

We are enclosing a copy of the 1982 General Tax Guide and Returns. We will forward a copy of the 1983 edition as soon as it is available.

We trust that this information will be useful.

Yours sincerely,

for Director Non-Corporate Rulings Division