Docket: 2021-30(IT)I
The appellant, Mr. Vohra, claimed a $42,000 deduction for spousal support on his 2018 personal tax return. The Minister of National Revenue (CRA) subsequently performed a routine post-assessment review on the deduction and denied the claim because there was no written separation agreement. The separating parties prepared their own agreement, which contained many flaws. There was no indication that the "agreement" was approved by legal counsel. The Minister of Revenue held the position that a home-made separation agreement was not an actual agreement and would not suffice for tax purposes.
The appellant brought the matter before the Federal Court of Appeal and was successful in reinstating the deduction on his 2018 tax return. No costs were awarded to either party. Despite the fact appellant was successful, we don't recommend preparing your own legal document when a marriage breaks down but rather seeking the services of an experienced divorce lawyer.
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