Words and Phrases - "throughout the taxation year"

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27 March 2009 Internal T.I. 2009-0308111I7 F - Crédit d'impôt pour enfant

s. 118(9.1) applies to death of dependant child, but not to parent

Where a dependent child dies in the year, can the child be considered to have resided "throughout the taxation year" with the parent under s. 118(1)(b.1)(i)? Where the parent who ordinarily resides with the child dies in the year, how do the conditions in s. 118(1)(b.1) apply? After also noting that “the CRA accepts by administrative position that only one of the parents can claim the child tax credit,” the Directorate responded:

The expression "throughout the taxation year" used in subparagraph 118(1)(b.1)(i) refers to the calendar year, implying that the conditions must be satisfied at every time during the taxation year, i.e., from January 1 to December 31 (except for the cases referred to in subsection 118(9.1)). Subsection 118(9.1) indicates that in the case of a child who is born, adopted or dies in the year, the expression "throughout the taxation year" is to be read as a reference to “throughout the portion of the taxation year that is after the child’s birth or adoption or before the child’s death”, confirming that the criteria for the application of subparagraph 118(1)(b.1)(i) can be satisfied when a dependent child dies in the calendar year.

However ... subsection 118(9.1) does not apply to a parent who dies during the calendar year ... [and] the deceased parent, or the estate thereof, could claim the child tax credit under subparagraph 118(1)(b)(ii) to the extent that he or she is otherwise entitled to the wholly dependant person credit.