INCOME TAX |
Income Calculation |
Dangerfield v. Canada
A-336-02
2003 FCA 480, Linden J.A.
19/12/03
8 pp.
Judicial review of Tax Court Judge's (T.C.J.) decision holding date support payments commence cannot be taken to be "commencement day" in respect of order itself under Income Tax Act (Act), s. 56.1(4)(b)(iv)--T.C.J. further concluded "there is still no commencement day of the order itself"--Judgment of Manitoba Court of Queen's Bench in application for custody, child support, financial disclosure, declaration of parentage pronounced April 21, 1997, formally signed May 5, 1997, operation of clause dealing with child support expressly said to commence May 1, 1997--Whether child support portion of judgment could have commencement day different than judgment i.e. April 21--T.C.J. erred in law--While necessary order for support have commencement day, language in order at issue specified "commencement day" for order to pay child support complying with Act, s. 56.1(4)(b)(iv)--Often different parts of orders must have different effective dates--Consequently, legal error to hold s. 56.1(4)(b)(iv) required only one commencement day for all aspects of complicated order containing several individual components in order to be able to obtain advantage of provision--In case at bar, commencement day specified for support payments--Clear intention of Judge who made order in question--In addition, clear from documentation parties intended to specify commencement day for child support payments in order to be able to avoid tax on payments in accordance with new legislation--Argument provision requires express reference in agreement or order to effect commencement day being specified "for purposes of this Act" without merit--Application allowed--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 56.1(4)(b)(iv) "commence-ment day" (as enacted by S.C. 1997, c. 25, s. 9; 1998, c. 19, s. 307).