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.