LA DEDUCTIBILITE DES FRAIS JURIDIQUES EN MATIERE DE DROIT DE LA FAMILLE : LES ENJEUX FISCAUX SOULEVES PAR LA POLITIQUE ADMINISTRATIVE

Abstract

The tax treatment of legal expenses incurred in family law related matters has been made more convoluted by the relative complexity of the Income Tax Act, by the division of powers in family law matters and the rights created by the two orders of government, as well as by the Canada Revenue Agency’s administrative policy. Hence, legal expenses incurred in various types of family law related matters have received varying tax treatment with regards to deductibility. A discussion of the interweaving of the relevant legislative schemes and the evolution of the assessing policy as well as the oscillation of the case law reveals the necessity for a legislative amendment specifically addressing the deductibility of legal expenses in this context. It is above all an issue of access to justice and equity for all taxpayers.