What is the character of maintenance payments made by the Respondent in 1997?

It is the Respondent's position that the 1997 payments were payments of arrears of maintenance amounts required to be paid under the 1977 Order. The Respondent relies on The Queen v. B.D. Sills, [1985] 1 C.T.C. 49 (F.C.A.) where it was held that payments do not change in character merely because they are not made on time. Accordingly, the Respondent argues that the character of the payments was maintenance payments made pursuant to the terms of the 1977 Order and that they met the requirements of the Income Tax Act, namely paragraph 56(1)(b), to be taxable in the hands of the recipient. I am satisfied that all of the requirements of that paragraph would be met if I were to find that the payments in 1997 were payments of arrears of amounts payable pursuant to the 1977 Order.