30 May 1990 Income Tax Severed Letter AC59652 - Married Equivalent Tax Credit

19(1)                                             5-9652
                                                  J.D. Jones
                                                  (613) 957-2104
19(1)

Re: Married Equivalent Tax Credit

This is in reply to your letter of February 19, 1990 wherein you requested an explanation with respect to the above-noted subject as a result of the changes brought about by tax reform.

Specifically, you have asked if a taxpayer can claim the married equivalent tax credit for a non-resident child if the other conditions of the married equivalent tax credit are met. Additionally, you have asked if such a claim can be made where the child or grandchild no longer resides in the same dwelling as the taxpayer who is claiming the credit.

We advise that an individual who is actually resident in Canada is ordinarily not entitled to the married equivalent tax credit in respect of an non-resident dependent, including the child of the individual, because the dependent is ordinarily not supported in a self-contained domestic establishment in which both the individual and the dependent lived. Where the other requirements of the married equivalent tax credit are met, and individual who resides abroad but is, by virtue of subsection 250(1) of the Income Tax Act, deemed to be resident in Canada, will be entitled to the married equivalent tax credit only in respect of the individual's child (which may include, in certain circumstances, a grandchild) or a person related to the individual who is also deemed to be resident in Canada by virtue of Subsection 250(1) of the Income Tax Act. We also advise that the same requirements with respect to a child or grandchild of the taxpayer, in the above situation, existed for the 1987 taxation year.

We have attached the Department's Interpretation Bulletin IT-513 (applicable for the 1988 and subsequent taxation years) and IT-191R2 (applicable to the 1986 and 1987 taxation years) and would direct your attention to paragraphs 16 to 28 and 15 to 25 of the bulletins respectively.

We trust our comments are of assistance to you.

Yours truly,

for Director Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch