This is the fourth article in my "Imputing Income"
series, which will explore the Court's authority to impute
income to a support payor who has unreasonably deducted expenses
from their income.
Legislative Authority
Section 19(1)(g) of the Child Support Guidelines says
income may be imputed when:
The parent or spouse unreasonably deducts expenses from
income.
Section 19(2) of the Child Support Guidelines states
that:
For the purposes of clause (1)(g), the reasonableness of an
expense deduction is not solely governed by whether the deduction
is permitted under the Income Tax Act.
Overview
The issue of reasonable deduction of expenses commonly arises
when there is a self-employed person who claims that their net
business income, as reflected on their income tax return, should be
their income for the purposes of calculating child and/or spousal
support. In many cases, the Court needs to "look under the
hood" to determine the true nature of a
