Larivière v. Minister of National Revenue, (1985) 8 F.T.R. 14 (TD)

• Judge: Pinard, J.
• Court: Federal Court (Canada)
• Case Date: November 05, 1985
• Jurisdiction: Canada (Federal)
• Citations: (1985), 8 F.T.R. 14 (TD)

Larivière v. MNR (1985), 8 F.T.R. 14 (TD)

MLB headnote and full text

Michel Larivière v. Her Majesty The Queen

(No. T-787-84)

Indexed As: Larivière v. Minister of National Revenue

Federal Court of Canada

Trial Division

Pinard, J.

December 19, 1985.

Summary:

A taxpayer appealed under s. 172(2) of the Income Tax Act against a notice of reassessment respecting his 1978 and 1979 taxation years. The taxpayer was required by a decree nisi to pay his ex-wife for her maintenance the total sum of $20,000, $10,000 of which was payable on April 1, 1979, followed by two payments of $5,000 each to be made on April 1, 1980 and 1981 respectively. The issue in this case was whether the $10,000 paid by the taxpayer in 1979 was deductible from his income. The Minister of National Revenue held that the $10,000 was not deductible.

The Federal Court of Canada, Trial Division, agreed with the Minister and dismissed the appeal.

Income Tax - Topic 2604

Deductions in computing income - Alimony and maintenance payments - "Allowance" - What constitutes - A husband was ordered by decree nisi to pay his ex-wife $20,000 for her maintenance, $10,000 of which was pay able on April 1, 1979 and two payments of $5,000 each to be made on April 1, 1980 and 1981 respectively - The Federal Court of Canada, Trial Division, held that the $10,000 paid by the husband in 1979 was not deductible from income, because the payment was not paid as "alimony or other allowance payable on a periodic basis for the maintenance of the recipient thereof ..." in ss. 60(b) or 60.1 of the Income Tax Act.

Words and Phrases

Alimony or some other allowance payable on a periodic basis for the maintenance of the recipient thereof - The Federal Court of Canada, Trial Division, discussed the meaning of the phrase "alimony or some other allowance payable on a periodic basis for the maintenance of the recipient thereof" as found in s. 60(b) of the Income Tax Act, S.C. 1970-71-72, c. 63.

Cases Noticed:

Veliotis v. R., [1974] F.C. 1, refd to. [para. 13].

Gagnon v. Minister of National Revenue, [1981] D.T.C. 5378; 47 N.R. 113 (F.C.A.), refd to. [para. 14].

Pascoe v. Minister of National Revenue, [1976] 1 F.C. 372; 12 N.R. 589 (F.C.A.), refd to. [para. 17].

No. 427 v. Minister of National Revenue, 57 D.T.C. 291, refd to. [para. 19].

Hanlin v. R., [1985] D.T.C. 5052 (F.C.C.T.D.), refd to. [para. 21].

Statutes Noticed:

Income Tax Act, S.C. 1970-71-72, c. 63, sect. 60(b) [paras. 3, 9, 12, 19-21]; sect. 60.1 [paras. 3, 9].

Divorce Act, R.S.C. 1970, c. D-8, sect. 11(1)(a)(i) [para. 6].

Counsel:

A. Gauthier, for the applicant;

J. Cote, for the respondent.

Solicitors of Record:

Gauthier, Nepveu, Leblanc et Associes, Sept-Iles, Quebec, for the appellant;

Frank Iacobucci, Q.C., Deputy Attorney General of Canada, Ottawa, Ontario, for the respondent.

This appeal was heard before Pinard, J., of the Federal Court of Canada, Trial Division, at Sept-Iles, Quebec, on November 5, 1985. The decision of Pinard, J., was delivered on December 19, 1985: