Principal Issues: Whether the Act provides a special status for individuals confined to a prison or similar institution.
Position: No, but the GST tax credit cannot be claimed in respect of such individuals and the spouse of such individuals have special rules when calculating child care expenses.
Reasons: Pursuant to section 122.5 and subsection 63(2) of the Act.
September 28, 2006
XXXXXXXXXX
Dear XXXXXXXXXX:
Thank you for your correspondence received on August 28, 2006, in which you ask about the income tax status of individuals confined to prisons or similar institutions.
As you note in your letter, there is a provision in the Income Tax Act that restricts an inmate's claim for the Goods and Services Tax credit. This credit cannot be claimed by or in respect of an individual for a month if the individual has been confined to a prison or similar institution for a period of at least 90 days that includes the first day of that month. A spouse's incarceration also affects the calculation of child care expenses. Other than these two, there are no provisions in the Act that assign a special status for income tax purposes to individuals in your circumstances.
In terms of your other enquiry, the Canada Revenue Agency may consider waiving interest on an outstanding debt if there is an inability to pay because of circumstances beyond the person's control. If you wish to explore relief under this provision, you should contact the tax services office that is managing your file.
Thank you for having taken the time to write. I trust that the information provided will be helpful.
Sincerely,
The Honourable Carol Skelton, P.C., M.P.
James Gibbons
957-2049
2006-020364
September 15, 2006