A
J
Frost
(orally:
December
16,
1977):—I
shall
now
give
my
decision
in
Appeal
No
77-213
between
Charles
E
Riddoch,
appellant,
and
the
Minister
of
National
Revenue,
respondent.
This
is
an
income
tax
appeal
with
respect
to
the
appellant’s
1972
and
1973
taxation
years.
The
appellant
and
Margaret
Rose
Riddoch
separated
in
April
of
1971.
On
April
29,
1971
they
executed
a
separation
agreement
under
which
the
appellant
agreed
to
pay
to
his
wife
$150
per
month,
and
$150
per
month
for
each
of
the
children.
On
September
23,
1971
the
wife
commenced
a
divorce
action
in
the
Supreme
Court
of
British
Columbia.
The
Court
ordered
the
continuance
of
the
above
payments
and,
in
addition,
ordered
and
judged
the
appellant
to
pay
to
Margaret
Rose
Riddoch
the
sum
total
of
property
taxes,
insurance
and
mortgage
payments
on
real
property
at
2451
Sutton
Road,
Victoria,
BC
as
same
fall
due.
The
question
at
issue
in
this
appeal
is
whether
or
not
the
additional
amount
or
any
part
thereof
paid
under
the
order
comes
within
the
meaning
of
paragraph
60(b)
of.
the
Income
Tax
Act,
SC
1970-71-72,
c
63,
as
amended.
In
the
case
at
bar
the
house
at
2451
Sutton
Road
was
owned
at
all
relevant
times
by
the
wife
and
occupied
by
her
and
three
children
of
the
marriage.
Although
mortgage
payments
in
so
far
as
they
relate
to
principal
and
interest
are
limited,
predetermined
and
fixed
sums
of
money,
they
do
not
qualify
as
advances
under
paragraph
60(b)
of
the
Income
Tax
Act.
The
Attorney
General
of
Canada
v
James
C
Weaver
and
Freda
J
Weaver,
[1975]
CTC
646;
75
DTC
5462,
and
Her
Majesty
the
Queen
v
Morton
Pascoe,
[1975]
CTC
656;
75
DTC
5427,
decisions
of
the
Federal
Court
of
Appeal
leave
no
doubt
in
my
mind
that.
the
meaning
of
the
word
“allowance”
where
it
appears
in
paragraph
60(b)
of
the
Act
excludes
the
above
mortgage
and
other
payments
made
by
the
husband
as
they
are
not
made
directly
to
the
wife
on
a
periodic
basis.
I
can
find
no
ground
on
which
to
distinguish
this
case
from
either
the
Weaver
or
the
Pascoe
cases
(supra)
and
accordingly
must
dismiss
the
appeal.
The
appeal
is
dismissed.
Appeal
dismissed.
Email this Content