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Support Payments

Grenon v. The Queen, 2014 TCC (Graham)–It does not offend the Charter of Rights that recipients can deduct legal fees to enforce support orders but payers cannot deduct the fees to resist a support order 

You may think it odd that a payer of support cannot deduct legal fees spent to resist a support order but a recipient of support can deduct fees spent to get or enforce the order.  Justice Graham explains the background to these differences and shows that they do not result in unfair discrimination contrary to equality protection in the Charter of Rights.   “[8]        … Read More »Grenon v. The Queen, 2014 TCC (Graham)–It does not offend the Charter of Rights that recipients can deduct legal fees to enforce support orders but payers cannot deduct the fees to resist a support order 

Landry c. La Reine, 2014 CCI (Lamarre) — You cannot deduct legal fees you spend to stop paying child or spousal support, even though your success will increase your personal wealth

“[10]        In fact, in the case Nadeau v. M.N.R., [2004] 1 FCR 587, 2003 FCA 400, the Federal Court of Appeal clearly held,  at paragraph 18, that expenses “incurred” by the payer of support (including those to put an end to it) cannot be considered as having been “incurred” to earn income and said that courts have never recognized any right to the deduction of… Read More »Landry c. La Reine, 2014 CCI (Lamarre) — You cannot deduct legal fees you spend to stop paying child or spousal support, even though your success will increase your personal wealth

Ochitwa v. The Queen, 2014 TCC 263 (C. Miller) — Child support for more than one child: the right to a tax credit depends on the wording of the order or separation agreement

If a court orders each spouse to pay a support amount for their children, each might be able to claim the dependent tax credit for one of the children.  If the court calculates the support amount due from each parent and orders that only one parent pay a net amount to the other: the payer gets no credit.   [8]    … I am perturbed… Read More »Ochitwa v. The Queen, 2014 TCC 263 (C. Miller) — Child support for more than one child: the right to a tax credit depends on the wording of the order or separation agreement

Slansky v. Canada (Attorney General), 2013 FCA 199 (Evans) – When does “Solicitor Client privilege” apply?  What does it get you?

This is a long decision (100 pages), arising from a complaint against a judge of the Ontario Superior Court of Justice and his conduct of a 2-year murder re-trial.  Complaints against Canada’s superior court judges are made to the Canadian Judicial Council under the Judges Act, R.S.C. 1985, c. J-1.  Relying on a report of a distinguished University of Toronto law professor, the Chair of the reviewing… Read More »Slansky v. Canada (Attorney General), 2013 FCA 199 (Evans) – When does “Solicitor Client privilege” apply?  What does it get you?

Thompson v. Canada (National Revenue), (2013 FCA Trudel) – Solicitor-client privilege protects clients not lawyers from audit

Solicitor-client privilege “belongs to the client, not the lawyer”.  (Para. 39.)  It “applies only to a communication between a lawyer and client, which is of a confidential character, and which is directly related to the seeking, formulating or giving of legal advice. Put differently, privilege will not attach to communications in which legal advice is neither sought nor offered or where the communication is not… Read More »Thompson v. Canada (National Revenue), (2013 FCA Trudel) – Solicitor-client privilege protects clients not lawyers from audit

Chadwick (2013 FCA, Near) – A divorce decree after April 1997 may not wreck your right to child support deductions

Before May 1997, the Income Tax Act allowed the paying spouse a deduction for child support payments, while the spouse who got the payments had to include them in her income.  As of May 1997, child support is no longer taxable or tax deductible.  What happens if your child support agreement was made before May 1997 but changed later?  That was Mr. Chadwick’s case: the spouses signed… Read More »Chadwick (2013 FCA, Near) – A divorce decree after April 1997 may not wreck your right to child support deductions

Berty v. The Queen (2013 TCC, Bedard)  — You cannot deduct combined spousal and child support amounts you pay from your bonus

This decision is interesting for family law lawyers.  Under a separation agreement Mr. Berty paid “Fifty percent (50%), net of income tax, of any bonus income received by [him] …  to the wife as lump sum child and spousal support”.  Bedard J. said the amount was not deductible because it was not periodic and because it included an indeterminate portion for child support.  He said:… Read More »Berty v. The Queen (2013 TCC, Bedard)  — You cannot deduct combined spousal and child support amounts you pay from your bonus

Danial (2013 TCC, Bocock) – Payments to spouses are deductible only with a Court order or written agreement

Justice Bocock confirmed that if you want to claim support payments to a former spouse, you must show that the payments were ordered by a court or by a written separation agreement.  But Bocock J. did acknowledge court cases where judges have accepted less formal proof of a written agreement.   Mr. Danial didn’t have this evidence (and originally, he claimed the payments as expenses from… Read More »Danial (2013 TCC, Bocock) – Payments to spouses are deductible only with a Court order or written agreement