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More CRA info for you payors

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  • More CRA info for you payors

    Found out that my ex claimed some of her legal expenses -not a big deal until I found out that ONLY the receiver can claim legal expenses - NEVER the payor.
    I called CRA - gave the following scenario...
    Ex and I are trying to hammer out something. She wants 5K per month in CS...I offer table amount (say 1600.00)...she refuses...we end up going to court or Arbitrator (as we did in my case) - Arbitrator rules in my favor.
    Even though I won - she gets to claim the legal expenses because it dealt with CS...I can't claim a damned thing.

    CRA's response??? Well sir - that's the law.

    Beware payors

  • #2
    I don't think I've ever had a clean year with CRA since divorce. Court Orders are like gold to them. One year I entered my support numbers wrong (UFile worded the question funny)... and it took more than 8 months to straighten it out... $6000 hanging in the air for one mistake.

    Also my SS clause gives her an automatic raise every year.... think CRA could automatically track that?? forget it... I have to file paper return with explanation letter every year now.

    And the lawyer fee deduction is beyond insane.... only thing that saves me is her income is negative every year so the deduction is useless.


    • #3
      The CRA views it as essentially legal fees to establish a claim to revenue. I would agree defending yourself should be deductible, from an equity perspective, but this is Canada home of the left-wing.

      Its odd though, given that CS is now tax-free that the CRA would care about the legal fees.


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