INCOME TAX |
Income Calculation |
Deductions |
Fraser v. Canada (Attorney General)
A-655-02
2004 FCA 128, Sharlow J.A.
25/3/04
6 pp.
Judicial review of Tax Court judgment (Fraser v. Canada, [2003] 1 C.T.C. 2563 (T.C.C.)) dismissing applicant's claim for deduction for child support payments made in 1999 to mother of his child--Support payments made pursuant to maintenance agreement entered into on June 30, 1992 under Alberta Parentage and Maintenance Act (PMA), s. 6--Alberta Maintenance Enforcement Act (MEA), s. 1(2) deeming agreement entered into under PMA, s. 6 to be maintenance order--Maintenance agreement filed with Court of Queen's Bench pursuant to MEA, s. 12(1) according to which parts of order relating to maintenance deemed to be judgment of Court upon filing--Income Tax Act, s. 56.1(4) defining "support amount"--Child support payments deductible if fall within definition--Whether maintenance agreement "order made by a competent tribunal in accordance with the laws of a province" when filed with Alberta Director of Income Maintenance and then Court of Queen's Bench--Tax Court holding MEA deeming provisions only apply for purposes of MEA, not Income Tax Act--Paragraph (b) of definition of "support amount" asks whether child support payments made under "an order made by a competent tribunal in accordance with the laws of a province"--Parliament thus indicating question of whether there is order meeting description matter of provincial law--Laws respecting child support, establishing formalities for obtaining court orders for child support, within legislative authority of provinces-- Phrase "in accordance with the laws of a province" broad enough to refer to all provincial laws regarding legal obligation to pay child support, including provincial laws governing procedure by which such legal obligation made enforceable-- This was not a case where provincial legislature attempted to amend Income Tax Act, or alter its effect, to meet some provincial objective not according with objectives of Income Tax Act--Legislature of Alberta simply streamlined procedure for obtaining court orders for child support so that "deemed" judgment of Court of Queen's Bench, as in this case, legal equivalent of "actual" judgment made by that court on consent --Only difference that consent order probably would require expenditure of more time by parties, and more judicial resources--Appeal allowed--Parentage and Maintenance Act, S.A. 1990, c. P-0.7, s. 6--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 56.1(4) "support payment" (as am. by S.C. 1997, c. 25, s. 9)--Maintenance Enforcement Act, S.A. 1985, c. M-0.5, ss. 1(2), 12(1).