September 4, 1992
| R.J.L. Read | P.D. Fuoco | |
| Director General | Personal and | |
| Rulings Directorate | General Section |
Certain Terms Used in the Income Tax Act
You asked us to provide you with comments on the occurrence of the following terms in the Act: "family", "spouse", "child(ren)" and "related persons".
The term "family" is used in 22 provisions of the Act. Generally, it is used with some other word or phrase to give it specific meaning such as "family allowance" referring to payments under the Family Allowances Act, 1973 (e.g. subsection 56(5)), "Share of the capital stock of a family farm corporation" or "Interest in a family farm partnership" (defined in subsection 70(10)). The term "family" is specifically defined in section 143, the section setting out specific rules with respect to the taxation of communal organizations. The only provision in the Act where it is left to its ordinary meaning is in paragraph 149(1)(b): the exempting provision for officers and employees of foreign governments. Our records indicate we have never been called upon to provide an interpretation of the word in this context.
The meaning of the term "spouse" is generally left to its ordinary meaning throughout the Act and is given a limited extended meaning in subsection 252(3) with respect to certain provisions to include "a party to a voidable or void marriage..." The term appears in over 140 provisions of the Act. It is specifically defined in subsection 146(1.1) for certain RRSP provisions and the pension registration rules in section 147.1. The Department takes the position that "spouse" includes only persons (of the opposite sex) who are legally married to each other according to the laws of Canada.
The word "child" or "children" is mentioned in 80 provisions of the Act. The extended meaning of the term for the purposes of the Act is contained in subsection 252(1) and, in addition to natural children, includes individuals who were, before reaching 19 years of age, wholly dependent on, and in the custody and control of the taxpayer; adopted children; a spouse's children; and spouses of children. For the purposes of certain provisions, for example, the rules relating to family farm corporations or family farm partnerships (defined in paragraph 70(10)(a)), the definition is extended even further to include grandchildren and great grandchildren.
"Related persons" is a very specific term which is defined in section 251. This definition not only includes individuals who are connected by blood relationship, marriage or adoption, but includes relationships between natural persons and corporations and between corporations. The term only appears in the Act in 4 provisions, 3 of which are in section 251 itself.
B.W. DathDirectorBusiness and General DivisionRulings DirectorateLegislative and IntergovernmentalAffairs Branch