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.
August 29, 1980
LONDON DISTRICT OFFICE Informal Consultation
Article 18, Paragraph 3 of the Canada-Australia Income Tax Convention (1980)
With regard to the above noted, would the following situation result in non-taxable alimony receipts:
Taxpayer and her husband left Canada some time ago to reside in Australia. During their stay they were divorced. The legal contract required the husband to pay alimony on a monthly basis. The taxpayer has since returned to Canada (1973) and has been reporting these receipts until 1979, as taxable income.
She has recently been advised that her husband has not been allowed to deduct these payments when filing his return of income.
It would appear from our review of the Canada-Australia Income Tax Convention, Article 18, Paragraph 3 that these receipts are non-taxable, but Hotline has advised this paragraph appears to be contradictory to the general pattern of treatment for alimony receipts where the payor resides in a country other than Canada.
We would appreciate your comments on this matter.
Chief of Audit CW:GG
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