9 August 1990 Income Tax Severed Letter ACF3639 - Alimony and Maintenance Payments Pursuant to a Demand

BY HAND

A.B. Adler 957-2066

August 9, 1990

Mr. R.A. Short General Director Tax Policy and Legislation Branch Department of Finance 140 O'Connor Street L'Esplanade Laurier 16th Floor, East Tower Ottawa, Ontario

Dear Al:

Re: Alimony and Maintenance Payments Pursuant to a Demand Under Provincial Court Rules

This is in reply to your letter dated April 30, 1990 regarding deductible amounts under paragraph 60(b) and (c) of the Act. You requested confirmation with respect to

          (i) the existing administrative position by Rulings
          applicable to alimony payments made pursuant to a demand
          for interim maintenance under provincial regimes similar
          to the Alberta rules of Court, and

          (ii) in particular, whether a Demand signed by the
          petitioner and the notice of acceptance of the Demand in
          writing signed by the separated spouse to pay the amount
          demanded would together constitute a "written agreement"
          for purposes of paragraphs 60(b) and (c) of the Act.

21(1)(b)

We would also refer you to the recent case involving D.M. CASTON v. HER MAJESTY THE QUEEN, 90 DTC 6297, F.C.T.D. In this case Martin, J. found that in the absence of the default of interim alimony and maintenance payments there would not be any order pursuant to which such payments were made for the purposes of paragraphs 60(b) or (c) of the Act.

21(1)(b)

Yours sincerely,

B.J. Bryson Acting Director Current Amendments and Regulations Division

Enclosure

c.c. H. Krakower