Wednesday, January 16, 2013
Tax Court case #3 of 2013: Mueller v. The Queen (2013 TCC 3).
As far as court cases go, this one couldn’t get any easier. The taxpayer borrowed money through a line of credit at a bank and sought to claim a personal tax credit on interest under section 118.62 of the Income Tax Act. The provision allows for a credit on interest related to student loans. While the taxpayer’s borrowing related to education, it didn’t fit into the limited borrowing requirements of the section and hence the credit was denied.
The judge writes,
[9] The difficulty in this case is the requirement that the loans be provided under one of the following: “the Canada Student Loans Act, the Canada Student Financial Assistance Act or a law of a province governing the granting of financial assistance to students.”
[10] In the notices of appeal, the appellants acknowledge that the loans were not eligible under any government program. This is fatal to their claim.
[12] Since the loans do not satisfy the conditions set out in section 118.62 of the Act, there is no relief that this Court can give.
[10] In the notices of appeal, the appellants acknowledge that the loans were not eligible under any government program. This is fatal to their claim.
[12] Since the loans do not satisfy the conditions set out in section 118.62 of the Act, there is no relief that this Court can give.
Note: The tax court’s web site lists cases 1 and 3, but not 2. What happened to 2? Will it appear later?
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