Précis: Mr. Ross, a lobster fisherman, agreed to make 5 payments to his former spouse:
$20,000.00 upon signing a separation agreement on November 26, 2015, a transfer in kind of a 2011 Jeep worth $22,000.00 in December 2015 and 3 further payments by cheque: $4,000.00 on December 8, 2016, $3,000.00 on December 16, 2016 and $3,000.00 on December 31, 2016. [Para. ]
CRA allowed the last three payments made in 2016 but denied the 2015 payments on the basis that they were not periodic payments for the maintenance of a former spouse. Bocock J. allowed the appeal on the basis that the payments were periodic and tailored to meet the taxpayer’s occupation as a lobster fisherman where the bulk of his income was earned in late fall and early winter with no income earned in the balance of the year. Mr. Ross was awarded costs of $150.00.
Ross v. R. – TCC: Five payments by lobster fisherman to former spouse were deductible as periodic spousal support paymentsPlus >