15 November 2011 External T.I. 2011-0415881E5 F - Pension alimentaire pour enfants -- summary under Article 18

The taxpayer was resident in Canada when ordered by a divorce decree to pay a monthly support to his ex-spouse for the exclusive benefit of their minor child (which was included in her income), but then ceased to be a resident in Canada. The taxpayer argued that he could deduct the amounts paid by virtue of Art. 18 of the applicable Convention, which provided:

"[A]limony and other similar payments arising in a Contracting State [e.g. Canada] and paid to a resident of the other Contracting State [e.g., XXXXXXXXXX] who is subject to tax therein in respect thereof shall be taxable only in that other State (XXXXXXXXXX).

In rejecting this argument, CRA stated:

[H[e is not subject to Canadian tax on child support and is not entitled to a deduction in respect of that support.

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