Wachal v. The Queen, 2020 TCC 78 (Informal Procedure)
CRA received the taxpayer’s application for the Canada child tax benefit on February 27, 2014. In light of the 11-month rule and in the absence of any evidence that there had been an extension under s. 122.62(2), Russell J found that CCTB benefits had been correctly denied for all months prior to January 2013.
|Locations of other summaries||Wordcount|
|Tax Topics - Income Tax Act - Section 122.6 - Eligible Individual - Paragraph (b) - Subparagraph (b)(i)||failure of Minister to plead the factors referenced in Reg. 6302 meant that the taxpayer could establish eligibility||250|
|Tax Topics - General Concepts - Onus||non-granular pleading of the Minister failed to shift the onus to the taxpayer||163|
Subsection 122.62(4) - Person ceasing to be an eligible individual
Willis (Arbeau) v. The Queen, 2012 DTC 1062 [at 2791], 2012 TCC 23 (Informal Procedure)
The taxpayer received cheques for child tax benefits and the national child benefit supplement at her house. When she separated from her husband and left him with custody of the child, he continued to receive and cash the cheques. Cambpell J. found that, under Canada's self-reporting tax system, the taxpayer had a duty to inform CRA of her change in circumstances. Accordingly, she was liable for the amounts paid between her separation and her orally informing the CRA of the change - likewise, she was not liable for amounts that continued to be paid for two months afterwards.
Ms. A received the CCTB for her three children for the period from July 2010 to June 2012. However, on June 1, 2011, Mr. B moved into her home and from thenceforth they lived in a conjugal relationship. The income of Mr. B is high enough to preclude access by Ms. A to the child care tax benefit. When was the CCTB affected?
CRA noted that
- the base taxation year for July 2012 to June 2013 was calendar 2011
- the adjusted income for a base taxation year is essentially the income of the claimant and the person who was the claimant’s spouse or common-law partner at the end of that base taxation year
- given that the definition of common-law partner in s. 248(1) includes persons who have been in a conjugal relationship for at least one year, Ms. A and Mr. B became common-law partners on June 1, 2012
- pursuant to s. 122.62(7)(b), Ms. A was required to notify CRA by July 31, 2012 of this change in status and Ms. A was deemed to have had a common-law partner on December 31, 2011 for the purposes of calculating the CCTB for the months of July 2012 to June 2013.
CRA then stated:
Consequently, paragraph 122.62(7)(b) will affect the calculation of Ms. A's CCTB as of July 2012. To calculate the CCTB for the months of July 2012 to June 2013, we must determine the claimant's adjusted income for the 2011 base taxation year. It must be noted that Ms. A was deemed to have a common-law partner as of December 31, 2011 for the purposes of calculating the CCTB for the months of July 2012 to June 2013. Therefore, Mr. B's income should be considered in the calculation of Ms. A's adjusted income for the 2011 base taxation year for the purposes of calculating the CCTB for the months of July 2012 to June 2013.
… Mr. B's income will not be considered in setting the CCTB for the months before July 2012 since paragraph 122.62(7) (b) applies only to a month that begins after a change in marital status.