2016-0668361E5 Common-law partners

Principal Issues: Is an adult XXXXXXXXXX partner also a common law partner for the ITA?

Position: In some circumstances. Common-law partner has the meaning as defined under the Income Tax Act.

Reasons: It is a question of fact in each scenario as to whether a conjugal relationship exists for the definition of common-law partner in subsection 248(1) of the Act.

Author: Brennan, Christopher
Section: 248(1); 251(2); 251(6); XXXXXXXXXX

XXXXXXXXXX                                                                                                       2016-066836
                                                                                                                               Chris Brennan
                                                                                                                               (613) 670-0827
April 19, 2018

Dear XXXXXXXXXX:

Re:  Common-law partner

This is in response to your correspondence of October 14, 2016, regarding the definition of common-law partner and whether being in an adult XXXXXXXXXX relationship XXXXXXXXXX equates to being in a common-law partnership as defined in the Income Tax Act (Act).

You have informed us that your XXXXXXXXXX lived together as adults until XXXXXXXXXX.  XXXXXXXXXX supported the other financially, and the other XXXXXXXXXX was the primary caregiver for XXXXXXXXXX sibling. The XXXXXXXXXX did not enter into a written XXXXXXXXXX agreement (XXXXXXXXXX) but you are of the opinion that they had an oral partnership agreement and were in an adult XXXXXXXXXX relationship as evidenced by their conduct. You ask whether they would be common-law partners for purposes of the Act.

Our Comments

This technical interpretation provides general comments about the provisions of the Act and related legislation (where referenced). It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination. The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R7, Advance Income Tax Rulings and Technical Interpretations.

The term common-law partner is defined in subsection 248(1) of the Act. A common-law partner, in respect of a taxpayer at a particular time, is a person who at that time cohabits in a conjugal relationship with the taxpayer and

*     has done so throughout a continuous period of at least 12 months that ends at that time, or

*     is the parent of a child of the taxpayer.

Whether or not two persons are living in a conjugal relationship is a question of fact.  For purposes of the Act, a common-law partner may be either an individual of the same sex or the opposite sex of the taxpayer.

The courts have considered a list of generally accepted characteristics of a conjugal relationship, which include shared shelter, sexual and personal behaviour, services, social activities, children, the societal perception of the couple, and economic support. The courts have also recognized that these characteristics may be present in varying degrees and that not all are necessary for a relationship to be found to be conjugal.  As such, each characteristic is to be given its proper weight in the context of each particular case.

XXXXXXXXXX non-conjugal relationships such as the blood relationships of siblings, or of a parent and child, XXXXXXXXXX. These latter non-conjugal relationships are not common-law partnerships as defined in the Act.

Accordingly, the XXXXXXXXXX would not be common-law partners for the purpose of the Act, by virtue of their sibling relationship.

We trust that these comments will be of assistance.

Yours truly,

Lita Krantz, CPA, CA
Manager, Tax Credits and Ministerial Issues
Business and Employment Division
Income Tax Rulings Directorate

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