Federal Appeal


Income tax

Other deductions

Legal fees incurred in family litigation concerning custody and support not deductible

Minister re-assessed taxpayer disallowing deduction of $6,265 for legal fees incurred in family law litigation concerning custody and support. Taxpayer’s appeal to Tax Court was dismissed on ground expense of this nature not incurred in order to earn income, and so not deductible. Taxpayer appealed on ground that legal fees resulted in entitlement to Child and Childcare tax benefits and so were deductible. Appeal dismissed. Tax court did not misapprehend evidence. Agreement taxpayer concluded dealt with other matters including custody and child support. Deduction of expense incurred to establish existence of source of income proscribed under s. 18(1)(b) of Income Tax Act.

Yovo c. Canada (2018), 2018 CarswellNat 1155, 2018 CAF 59, Marc Noël C.J., Richard Boivin J.A., and Mary J.L. Gleason J.A. (F.C.A.).

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