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Grandfather clause in Claiming CS?

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  • Grandfather clause in Claiming CS?

    My Partner has claimed CS for years. Now this year Revenue Canada is stating that he is not allowed. He had an order 1999 but exact same amount that was negotiated in 1997...his ex wife left. Anyway he was told then by Revenue Canada that if the new order was exactly the same as the old order then it was "grandfathered"! Now he is trying to prove that...we will owe a FORTUNE in taxes HELP!

  • #2
    From the Federal Department of Finance, the changes in taxation of child support from the 1996 budget.

    Most especially,
    First, child support paid under orders or agreements that are made or varied after April 30, 1997 will no longer be taxed as income to the recipient, or deducted from income by the paying parent.
    Unless the 1997 order was dated before April 30, it would not be grandfathered. The advice you received in 1999 they may not have known that the original order wasn't grandfathered.

    "told by Revenue Canada" if you had that in writing and still have it on file, you have good grounds to appeal any owed taxes. You believed in good faith that you were paying the proper amount and what you owe now would be punishing. I have friends who have had their arrears reduced for less reason than that. At the very least you could get a break on interest charges. Even if you don't have it in writing you have a decent chance if you make an appointment and go in and talk to them.

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    • #3
      Is it absolutely necessary to post the same link I did just so you can post again in the same thread and add nothing useful?

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      • #4
        What you posted was exactly the same link that I posted. You aren't adding anything new to the topic.

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        • #5
          Thank you for the link and the suggestions

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