THE PAYOR’S INCOME
The Guidelines prescribe a method to determine a payor’s income. The starting point is the payor’s total income shown on his or her income tax return as adjusted.
The court may also impute income to a parent. in a number of situations including but not limited to
- Intentional under-employment.
- Exemption from payment of income tax.
- Payment of tax at an effective rate lower than that in Canada.
- Diversion of income.
- The parent’s failure to reasonably utilize property to generate income;
- The parent’s failure to make proper financial disclosure;
- A situation in which a significant portion of income is paid from dividends or capital gains; or the parent’s unreasonable deduction of expenses from income, reasonableness not being solely governed by the standard applied in the Income Tax Act.