Précis: Mr. Dicks paid $2,400 ($200 per month) to his former spouse in 2015 pursuant to a written separation agreement:
 With respect to any $200 monthly payments, paragraph 8 of the agreement provides, under the heading “Mutual Fund”, that,
The husband agrees that he will make a contribution to an investment of the wife’s choice in the wife’s name in the amount of $200 per month, commencing January 15, 2012 until such time as the husband reaches the age of 60.
He sought to deduct the payments as spousal support and CRA denied the deduction on the basis that they were not “support” payments. Mr. Dicks appealed to the Tax Court which denied his appeal, holding that the payments were not to satisfy “alimentary needs”. There was no order as to costs since this was an informal procedure appeal.
Dicks v. R. – TCC: Monthly payments to a former spouse for investment purposes were not deductible as “spousal support”.READ MORE »