Précis: The taxpayer sought to deduct spousal support payments made in 2013. CRA allowed deductions for payments made in 2014 and 2015 on the basis that a finalized separation agreement was entered into in 2015 since under the provisions of the Income Tax Act deductions were permitted in “the year and previous year” in which the agreement was reached. CRA denied the deduction for 2013 on the basis that no binding separation agreement was reached in either 2013 or in 2014. The taxpayer appealed to the Tax Court which agreed with CRA’s position and dismissed the taxpayer’s appeal, but without costs since this was an informal procedure appeal.
Burton v. R. – TCC: Insufficient evidence of binding legal agreement to permit deduction of support payments in 2013READ MORE »