Précis: The taxpayer agreed in 2010 to pay monthly support to her former wife in respect of a son of the marriage. In 2013 the former wife moved and, as a result, agreed that the son would be primarily in the custody of the taxpayer who would pay no further support in respect of the son. The taxpayer claimed dependent and child tax credits under paragraphs 118(1)(b) and (b.1) of the Income Tax Act for 2013. CRA denied the claim on the basis that during part of that year the taxpayer was paying support to her ex-wife in respect of the child. The taxpayer appealed to the Tax Court which agreed with the position of CRA holding that the credits in question could not be prorated. Accordingly the taxpayer’s appeal was dismissed. There was no order as to costs since this was an informal procedure appeal.
Cook v. R. – TCC: Child tax credits cannot be prorated where support payable for part of yearREAD MORE »