Subsection 122.62(1)
See Also
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.
Subsection 122.62(4) - Person ceasing to be an eligible individual
See Also
Willis (Arbeau) v. The Queen, 2012 DTC 1062 [at 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.
Subsection 122.62(5)
Paragraph 122.62(5)(b)
See Also
O'Brien v. The King, 2023 TCC 132 (Informal Procedure)
The taxpayer was a mother of two and a recipient of the Canada child benefit (CCB), had an income of approximately $27,000 in 2018, and her husband had an income of approximately $7,000 in 2018 under the Canada pension plan and also received monthly disability payments under the Ontario Disability Support Program Act, 1997 (the ODSP payments), totalling approx. $24,000 per annum. S. 56(1)(u)(ii) required the ODSP payments to be included in the income of the taxpayer, as the higher-earner spouse, and they were deducted in computing her taxable income pursuant to s. 110(1)(f). As a result of the January 2020 death of the taxpayer’s husband, the Minister applied s. 122.62(5)(b) - which provided that, effective after the first month ending after the death of her spouse, her “adjusted income” (i.e., family income) for her 2018 base taxation year was deemed to her income for that year - to redetermine the taxpayer’s CCB entitlement amount on the basis that, pursuant to s. 56(1)(u)(ii), the ODSP payments were income of her and not him for that base taxation year, thus nearly doubling her income and greatly reducing the CCB benefit.
Before allowing her appeal, Russell J noted (at para. 17) that the Explanatory Notes regarding s. 122.62(5) indicated that, “[t]he deceased person’s income…will not be taken into account in calculating the individual’s adjusted income for the relevant [base] taxation year for…computing the [CCB] for each month subsequent to the month of death” and (at para. 20) that the Explanatory Notes regarding s. 56(1)(u)(ii) helped to “clarify that the allotment of social assistance income per subparagraph 56(1)(u)(ii) from the lesser income spouse to the higher income spouse is without any intended effect upon the latter spouse’s CCB entitlement, upon the death of the lesser income spouse who had generated the social assistance income in the first place.”
Russell quoted from Villa Ste-Rose in stating (at paras. 34, 37):
Analogously [to that case], in the present case there is “a literal interpretation which may produce illogical or absurd results [and so] must be set aside”.
… [S]ubparagraph 56(1)(u)(ii) does have, unintentionally, a profoundly detrimental effect upon subsection 122.62(5), frustrating both purpose and proper application of that provision … as to allowing proper re-determination of CCB entitlement.
Subsection 122.62(7)
Paragraph 122.62(7)(b)
Administrative Policy
30 April 2013 External T.I. 2013-0475271E5 F - CCTB - Marital Status Change
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.