Wong v. The King: Lessons in Shared Custody and the Canada Child Benefit
When it comes to tax disputes, few areas are as personal—and as emotionally charged—as those involving child benefits. The recent Tax Court of Canada (“TCC”) decision in Wong v. The King, 2025 TCC 24, sheds light on how the courts determine eligibility for the Canada Child Benefit (“CCB”) in shared-custody situations. It also serves as a cautionary tale for separated parents navigating the intersection of family law and tax entitlement.
Wong v. The King at a Glance
In this case, the taxpayer, Ms. Chok Kei Wong, challenged the CRA’s decision to award her only 50% of the CCB for the 2020 to 2022 benefit years. She argued she was the primary caregiver of her son and therefore entitled to the full amount of the benefit. Her ex-husband, Mr. Raymond Shiu, had previously advised that he would not be pursuing a CCB claim.
Despite her assertions—highlighting greater financial contributions, her more structured parenting style, and primary responsibility for extracurricular and educational matters—the Court upheld the CRA’s assessment, finding that both parents were “shared custody parents” under the Income Tax Act.
Overview of the Legal Framework
Under section 122.6 of the Income Tax Act, an “eligible individual” for CCB purposes must be a parent who resides with and primarily cares for a “qualified dependant” (i.e., a child). This eligibility divides further between:
A parent who is the primary caregiver and not in a shared-custody arrangement, and
A shared-custody parent, one of two parents who have at least 40% custody on an approximately equal basis.
Where this applies, each parent receives 50% of the CCB, regardless of financial disparity or differing parenting styles.
Although the Act includes a “female parent presumption”, where the mother is initially presumed to be the primary caregiver, this presumption does not apply when both parents live separately and file CCB applications from different addresses—as was the case in Wong.
Additional guidance is found in Income Tax Regulation 6302, which outlines eight caregiving factors the CRA and courts may consider, including:
Responsibility for medical care
Participation in schooling
Involvement in extracurricular activities
General day-to-day supervision
These factors are considered holistically to determine who primarily fulfills the care responsibilities.
Implications for Canadian Taxpayers
The decision in Wong emphasizes that equal parenting time will typically result in equal CCB entitlement, regardless of financial disparities or differing parenting philosophies. To be considered the primary caregiver, a parent must clearly and substantially exceed the other’s involvement in the child’s day-to-day care.
Crucially, private agreements between parents—whether verbal or written—do not override the legislation. The Minister is not bound by any arrangement purporting to waive or transfer a parent’s entitlement to the CCB. As the Court reaffirmed, only Parliament can define eligibility and payment rules under the Act.
Conclusion
For separated or divorced parents in Canada, Wong v. The King is a reminder that shared custody means shared benefits—even when the caregiving arrangement feels uneven. Legal determinations turn on objective time-sharing and factual caregiving involvement, not financial contributions or informal agreements.
If you need advice regarding your CCB entitlement and eligibility, contact us today!
** Disclaimer: This article provides information of a general nature only. It does not provide legal advice, nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions, you should consult a lawyer.
Alessandra Tuzi is returning to Rosen & Associates as an Articling Student following her 2L term as a Summer Student.
She recently received her J.D. with a specialization in Business Law from the University of Western Ontario Faculty of Law.
Elias Zafiridis
Elias Zafiridis has joined Rosen & Associates Tax Law as a Legal Consultant.
Elias began his academic studies at McMaster University by receiving a Bachelor of Arts in both English and History. After completing his undergraduate degree he received his Juris Doctor as part of the inaugural class at Toronto Metropolitan University’s Lincoln Alexander School of Law in 2023. During his time at the institution, Elias was an officer of the Lincoln Alexander Mooting Society.
Wong v. The King: Lessons in Shared Custody and the Canada Child Benefit
When it comes to tax disputes, few areas are as personal—and as emotionally charged—as those involving child benefits. The recent Tax Court of Canada (“TCC”) decision in Wong v. The King, 2025 TCC 24, sheds light on how the courts determine eligibility for the Canada Child Benefit (“CCB”) in shared-custody situations. It also serves as a cautionary tale for separated parents navigating the intersection of family law and tax entitlement.
Wong v. The King at a Glance
In this case, the taxpayer, Ms. Chok Kei Wong, challenged the CRA’s decision to award her only 50% of the CCB for the 2020 to 2022 benefit years. She argued she was the primary caregiver of her son and therefore entitled to the full amount of the benefit. Her ex-husband, Mr. Raymond Shiu, had previously advised that he would not be pursuing a CCB claim.
Despite her assertions—highlighting greater financial contributions, her more structured parenting style, and primary responsibility for extracurricular and educational matters—the Court upheld the CRA’s assessment, finding that both parents were “shared custody parents” under the Income Tax Act.
Overview of the Legal Framework
Under section 122.6 of the Income Tax Act, an “eligible individual” for CCB purposes must be a parent who resides with and primarily cares for a “qualified dependant” (i.e., a child). This eligibility divides further between:
Where this applies, each parent receives 50% of the CCB, regardless of financial disparity or differing parenting styles.
Although the Act includes a “female parent presumption”, where the mother is initially presumed to be the primary caregiver, this presumption does not apply when both parents live separately and file CCB applications from different addresses—as was the case in Wong.
Additional guidance is found in Income Tax Regulation 6302, which outlines eight caregiving factors the CRA and courts may consider, including:
These factors are considered holistically to determine who primarily fulfills the care responsibilities.
Implications for Canadian Taxpayers
The decision in Wong emphasizes that equal parenting time will typically result in equal CCB entitlement, regardless of financial disparities or differing parenting philosophies. To be considered the primary caregiver, a parent must clearly and substantially exceed the other’s involvement in the child’s day-to-day care.
Crucially, private agreements between parents—whether verbal or written—do not override the legislation. The Minister is not bound by any arrangement purporting to waive or transfer a parent’s entitlement to the CCB. As the Court reaffirmed, only Parliament can define eligibility and payment rules under the Act.
Conclusion
For separated or divorced parents in Canada, Wong v. The King is a reminder that shared custody means shared benefits—even when the caregiving arrangement feels uneven. Legal determinations turn on objective time-sharing and factual caregiving involvement, not financial contributions or informal agreements.
If you need advice regarding your CCB entitlement and eligibility, contact us today!
** Disclaimer: This article provides information of a general nature only. It does not provide legal advice, nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions, you should consult a lawyer.
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