Lariviere v. Minister of National Revenue, (1988) 113 N.R. 153 (FCA)

• Judge: Pratte, Hugessen and Desjardins, JJ.A.
• Court: Federal Court of Appeal (Canada)
• Case Date: October 13, 1988
• Jurisdiction: Canada (Federal)
• Citations: (1988), 113 N.R. 153 (FCA)

Lariviere v. MNR (1988), 113 N.R. 153 (FCA)

MLB headnote and full text

[French language version follows English language version]

[La version française vient à la suite de la version anglaise]

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Michel Lariviere (appellant) v. Her Majesty The Queen (respondent)

(No. A-24-86)

Indexed As: Lariviere v. Minister of National Revenue

Federal Court of Appeal

Pratte, Hugessen and Desjardins, JJ.A.

October 13, 1988.

Summary:

A husband was ordered by decree nisi to pay his ex-wife maintenance of $20,000, $10,000 of which was payable on April 1, 1979, and two payments of $5,000 each to be made on April 1, 1980 and 1981. The husband deducted the three payments from his income for income tax purposes. The Minister of National Revenue reassessed, disallowing the deductions. The taxpayer appealed.

The Federal Court of Canada, Trial Division, in a decision reported 8 F.T.R. 14, agreed with the Minister and dismissed the appeal. The taxpayer appealed.

The Federal Court of Appeal allowed 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 payable on April 1, 1979, and two payments of $5,000 each to be made on April 1, 1980 and 1981 - The Federal Court of Appeal held that the three instalments were deductible under s. 60(b) of the Income Tax Act, because they were income rather than capital for the person receiving them and they were payable periodically for the wife's maintenance.

Cases Noticed:

Veliotis v. R., [1974] 1 F.C. 3, consd. [paras. 5, 7, footnote 2].

Statutes Noticed:

Divorce Act, S.C. 1986, c. 4, sect. 11(1)(a)(i) [para. 8, footnote 3].

Income Tax Act, S.C. 1970-71-72, c. 63, sect. 60(b) [para. 2 et seq., footnote 1].

Counsel:

Raymond Nepveu, for the appellant;

Paul Plourde, for the respondent.

Solicitors of Record:

Gauthier, Nepveu & Leblanc, Sept-Iles, Québec, for the appellant;

Deputy Attorney General of Canada, Ottawa, Ontario, for the respondent.

This appeal was heard in Québec, Quebec, on October 13, 1988, before Pratte, Hugessen and Desjardins, JJ.A., of the Federal Court of Appeal. The decision of the court was delivered by Pratte, J.A., on October 13, 1988.