INCOME TAX
Income Calculation
Appeal from Tax Court of Canada decision (2005 TCC 671) dismissing income tax appeal for 1998, 1999, 2000—Whether child support received in those years from former spouse taxable—Child support not taxable under Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 56(1)(b) if receivable by appellant from former spouse under agreement, order on or after commencement day, before end of year in respect of period that began on, after commencement day—Child support subject to new regime only if payable under agreement, order with commencement day of May 1, 1997 or later—All child support payable under 1998 separation agreement, not 1994 interim order—Child support thus payable on, after May 1, 1998, subject to new regime, not taxable—Appeal allowed—Per Nadon J.A. (dissenting): Neither 1998 separation agreement nor 1999 judgment for divorce changing child support payable to appellant by former spouse under 1994 interim order—Payments remaining at $1,000 per month for two children of marriage—No "commencement day" under s. 56.1(4).
Holbrook v. Canada (A‑565‑05, 2007 FCA 145, Nadon and Sharlow JJ.A, judgment dated 11/4/07, 15 pp.)