The appellant paid his former wife $360 a month pursuant to a divorce judgment to repay two hypothecs and municipal and school taxes on her property.
The Minister of National Revenue disallowed the deductions claimed for these payments.
The Supreme Court of Canada held that the payments qualified as an 'allowance' under s. 60(b) of the Income Tax Act because they were limited, predetermined, paid for the maintenance of the recipient, and at her complete disposition for her own benefit.
The appeal was allowed and the deductions were permitted.
