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excel 11-07-2017 09:30 PM

Offsey child support , tax law , how do I defend myself ?
I have been trying to get CRA to recognize my role as an equal and supporting parent for a few years now and am now just weeks away from my tax court date.

Background is separated since 2012 , joint and equal custody of 2 boys under the age of 16 . They do a 1 week at my house, 1 week at her house arrangement. Our third and oldest son (FT in school age 21 ) lives with me exclusively since 2015 .

Our lawyer prepared separation agreement is riddled with vague phrases and omissions.

One section says we each get to claim 1 child as an eligible dependent and we each get to claim 6 monthís worth of child tax credits each and every year.

Another section says since I make a little bit more than she does, I pay her the net difference in child support ( a couple of hundred bucks a month )

CRA says NO, since I pay , I get no CT credits and no EDC.

I argue that we both pay, I just pay a little more. They donít care .

They site

Verones v. Canada, 2013 FCA 69 (CanLII)

So I go back to Family Court to try to get the agreement amended properly. Ex puts up a fight .

For the last 14 months I have been trying to get my separation agreement changed in Family court , but there always seems to be something that gets in the way. ( i.e. : first opposing counsel not up to speed yet, then the financials get faxed to me are so dark, they cannot be read, then opposing counsel is no longer on the case because of non payment and holding the files hostage, lastly , we will do it in mediation sessions but of course it doesnít get done and I am still waiting )

I am now trying a procedural motion to try to get it heard last minute but no guarantees that will happen .

If I do not get my motion to change heard in time , does anyone have any suggestions as to how I can defend myself in tax court ?

Can I argue that my EX is purposely dragging this out because she knows I have to go to tax court as well ?

If I get a decision from Family Court, 2 months after my tax court hearing , can I go back to tax court and re-open my appeal ?

Surely the courts have run across this sort of thing before ?

Is there a contrary argument to Verones v Canada ?

Tayken 11-08-2017 10:46 AM

Search my threads... I posted it a while back.

Tayken 11-08-2017 01:07 PM


All answered there.

excel 11-08-2017 09:20 PM

Thank you for your reply. I did print your link and have read it many times . I do understand the premise but just am not sure exactly how I am supposed to go about dealing with the ammendment. I know I have to show money going both ways, I know not to reference the Federal guidelines and I know not to use the word offset.

I guess I am concerned that even if Family Court allows my motion to change, if I do not write it up exactly correct that CRA will do whatever they want anyways and I will not get a second chance to " right the wrong ".
From the research I have done it doesn't seem like CRA wants to give anyone paying child support the EDC benefit , no matter what .

trinton 11-08-2017 10:39 PM

The separation agreement or court order should contain provisions requiring each parent to pay support to the other, and the parents should make separate payments even if there is overlap. This will ensure that section 118(5.1) of the Act is triggered and that both parents are eligible, even though only one parent may claim the credit.

So each parent pays other through fro ?

blinkandimgone 11-08-2017 11:15 PM

Parent A pays parent B $600
Parent B pays parent A $500
As a matter of convenience, parent A will transfer the amount of $ 100 to parent B.

I believe this has been recommended in the past.

trinton 11-08-2017 11:23 PM


Originally Posted by blinkandimgone (Post 225195)
As a matter of convenience, parent A will transfer the amount of $ 100 to parent B.

can someone confirm this works as opposed to each parent paying their full share? in terms of CRA

Tayken 11-09-2017 09:34 AM


Originally Posted by trinton (Post 225196)
can someone confirm this works as opposed to each parent paying their full share? in terms of CRA

It works. I helped two parents with the same issue. Its all technicalities in how the agreement is written. What was done was a separate agreement just for the purposes of tax filings was reached. But, there was no fight between these parents. Both had gotten denied to claim the child. Problem is now resolved with proper wording.

As well, when both parents file they have to file what they are paying and getting in full. Not the difference on the offset. The agreement states that they will do this too.

Other than stating the residence pattern (not the schedule in full) and the child support obligations and how they were paid. Nothing more and nothing less. Minimal information. Don't file the whole bloody agreement or court order.

I am of the opinion that there should be 3 agreements and orders to simplify making changes.:

1. Custody and access (pure no CS or Section 7 in there)
2. Child Support and Section 7 for FRO/Other stuff.
3. Tax Filing Agreement (For CRA)

Good Luck!

Soiled 11-09-2017 12:14 PM

I'll second Tayken on it's working. That wording is similar to how mine is written. Several times now CRA has denied me being eligible for the credits, but each time I dispute it with them, and they back down.

Sam Sung 11-09-2017 02:56 PM

I too have been denied each year since 2013 and of course my ex and I didn't actually exchange payments to each other. I merely paid her the net difference.

Even though I have appealed each year , Revenue Canada always says " no , only you made payments , so you get nothing"

On another note, my agreement specifically says we are to split the child tax benefit with 6 months worth for her and 6 months worth for me .

Since I never received anything , can I sue her for half of what she received each year ?

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