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Federal Child Support Guidelines table amounts.
News: The
Federal Child Support Guidelines Table amounts will be changing as of
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Federal Tables must still be used to determine child support owed before
December 31, 2011. However, the updated Federal Tables (link to PDF
tables) should now be used to figure out how much child support should
be paid from December 31, 2011 onward.
FEDERAL
CHILD SUPPORT GUIDELINES
TABLE
OF PROVISIONS
(This
table is not part of the Guidelines.)
OBJECTIVES
1.
Objectives
INTERPRETATION
2.
Definitions
AMOUNT OF CHILD SUPPORT
3.
Presumptive rule
4. Incomes
over $150,000
5. Spouse
in place of a parent
6. Medical
and dental insurance
7. Special
or extraordinary expenses
8. Split
custody
9. Shared
custody
10. Undue
hardship
ELEMENTS OF A CHILD SUPPORT
ORDER
11. Form
of payments
12.
Security
13.
Information to be specified in order
VARIATION OF CHILD SUPPORT
ORDERS
14.
Circumstances for variation
INCOME
15.
Determination of annual income
16.
Calculation of annual income
17.
Pattern of income
18.
Shareholder, director or officer
19.
Imputing income
20.
Non-resident
INCOME INFORMATION
21.
Obligation of applicant
22.
Failure to comply
23.
Adverse inference
24.
Failure to comply with court order
25.
Continuing obligation to provide income information
26.
Provincial child support services
COMING INTO FORCE
27. Coming
into force
SCHEDULE I
SCHEDULE II
SCHEDULE III
* * * * *
* * * * * * *
FEDERAL
CHILD SUPPORT GUIDELINES
OBJECTIVES
Objectives
1. The objectives of
these Guidelines are
(a) to establish a fair
standard of support for children that ensures that they continue to
benefit from the financial means of both spouses after separation;
(b) to reduce conflict
and tension between spouses by making the calculation of child support
orders more objective;
(c) to improve the
efficiency of the legal process by giving courts and spouses guidance in
setting the levels of child support orders and encouraging settlement;
and
(d) to ensure consistent
treatment of spouses and children who are in similar circumstances.
INTERPRETATION
Definitions
2. (1) The definitions in
this subsection apply in these Guidelines.
"Act"
« Loi »
"Act" means the Divorce
Act.
"child"
« enfant »
"child" means a child of
the marriage.
"income"
« revenu »
"income" means the annual
income determined under sections 15 to 20.
"order assignee"
« cessionnaire de la créance alimentaire »
"order assignee" means a
minister, member or agency referred to in subsection 20.1(1) of the Act
to whom a child support order is assigned in accordance with that
subsection.
"spouse"
« époux »
"spouse" has the meaning
assigned by subsection 2(1) of the Act, and includes a former spouse.
"table"
« table »
"table" means a federal
child support table set out in Schedule I.
Income Tax Act
(2) Words and expressions
that are used in sections 15 to 21 and that are not defined in this
section have the meanings assigned to them under the Income Tax Act.
Most current
information
(3) Where, for the
purposes of these Guidelines, any amount is determined on the basis of
specified information, the most current information must be used.
Application of
Guidelines
(4) In addition to child
support orders, these Guidelines apply, with such modifications as the
circumstances require, to
(a) interim orders under
subsections 15.1(2) and 19(9) of the Act;
(b) orders varying a
child support order;
(c) orders referred to in
subsection 19(7) of the Act; and
(d) recalculations under
paragraph 25.1(1)(b) of the Act.
Recalculations
(5) For greater
certainty, the provisions of these Guidelines that confer a
discretionary power on a court do not apply to recalculations under
paragraph 25.1(1)(b) of the Act by a provincial child support service.
AMOUNT OF CHILD SUPPORT
Presumptive rule
3. (1) Unless otherwise
provided under these Guidelines, the amount of a child support order for
children under the age of majority is
(a) the amount set out in
the applicable table, according to the number of children under the age
of majority to whom the order relates and the income of the spouse
against whom the order is sought; and
(b) the amount, if any,
determined under section 7.
Child the age of majority
or over
(2) Unless otherwise
provided under these Guidelines, where a child to whom a child support
order relates is the age of majority or over, the amount of the child
support order is
(a) the amount determined
by applying these Guidelines as if the child were under the age of
majority; or
(b) if the court
considers that approach to be inappropriate, the amount that it
considers appropriate, having regard to the condition, means, needs and
other circumstances of the child and the financial ability of each
spouse to contribute to the support of the child.
Applicable table
(3) The applicable table
is
(a) if the spouse against
whom an order is sought resides in Canada,
(i) the table for the
province in which that spouse ordinarily resides at the time the
application for the child support order, or for a variation order in
respect of a child support order, is made or the amount is to be
recalculated under section 25.1 of the Act,
(ii) where the court is satisfied that the province in which that spouse
ordinarily resides has changed since the time described in subparagraph
(i), the table for the province in which the spouse ordinarily resides
at the time of determining the amount of support, or
(iii) where the court is
satisfied that, in the near future after determination of the amount of
support, that spouse will ordinarily reside in a given province other
than the province in which the spouse ordinarily resides at the time of
that determination, the table for the given province; and
(b) if the spouse against
whom an order is sought resides outside of Canada, or if the residence
of that spouse is unknown, the table for the province where the other
spouse ordinarily resides at the time the application for the child
support order or for a variation order in respect of a child support
order is made or the amount is to be recalculated under section 25.1 of
the Act.
SOR/97-563, s. 1
Incomes over $150,000
4. Where the income of
the spouse against whom a child support order is sought is over
$150,000, the amount of a child support order is
(a) the amount determined
under section 3; or
(b) if the court
considers that amount to be inappropriate,
(i) in respect of the
first $150,000 of the spouse's income, the amount set out in the
applicable table for the number of children under the age of majority to
whom the order relates;
(ii) in respect of the
balance of the spouse's income, the amount that the court considers
appropriate, having regard to the condition, means, needs and other
circumstances of the children who are entitled to support and the
financial ability of each spouse to contribute to the support of the
children; and
(iii) the amount, if any,
determined under section 7.
Spouse in place of a
parent
5. Where the spouse
against whom a child support order is sought stands in the place of a
parent for a child, the amount of a child support order is, in respect
of that spouse, such amount as the court considers appropriate, having
regard to these Guidelines and any other parent's legal duty to support
the child.
Medical and dental
insurance
6. In making a child
support order, where medical or dental insurance coverage for the child
is available to either spouse through his or her employer or otherwise
at a reasonable rate, the court may order that coverage be acquired or
continued.
Special or
extraordinary expenses
7. (1) In a child support
order the court may, on either spouse's request, provide for an amount
to cover all or any portion of the following expenses, which expenses
may be estimated, taking into account the necessity of the expense in
relation to the child's best interests and the reasonableness of the
expense in relation to the means of the spouses and those of the child
and to the family's spending pattern prior to the separation:
(a) child care expenses
incurred as a result of the custodial parent's employment, illness,
disability or education or training for employment;
(b) that portion of the
medical and dental insurance premiums attributable to the child;
(c) health related
expenses that exceed insurance reimbursement by at least $100 annually,
including orthodontic treatment, professional counselling provided by a
psychologist, social worker, psychiatrist or any other person,
physiotherapy, occupational therapy, speech therapy and prescription
drugs, hearing aids, glasses and contact lenses;
(d) extraordinary
expenses for primary or secondary school education or for any other
educational programs that meet the child's particular needs;
(e) expenses for
post-secondary education; and
(f) extraordinary
expenses for extracurricular activities.
SOR/00-337, s. 1(1), (2),
(3)
SOR/00-337, s. 1
Sharing of expense
(2) The guiding principle
in determining the amount of an expense referred to in subsection (1) is
that the expense is shared by the spouses in proportion to their
respective incomes after deducting from the expense, the contribution,
if any, from the child.
Subsidies, tax
deductions, etc.
(3) In determining the
amount of an expense referred to in subsection (1), the court must take
into account any subsidies, benefits or income tax deductions or credits
relating to the expense, and any eligibility to claim a subsidy, benefit
or income tax deduction or credit relating to the expense.
Split custody
8. Where each spouse has
custody of one or more children, the amount of a child support order is
the difference between the amount that each spouse would otherwise pay
if a child support order were sought against each of the spouses.
Shared custody
9. Where a spouse
exercises a right of access to, or has physical custody of, a child for
not less than 40 per cent of the time over the course of a year, the
amount of the child support order must be determined by taking into
account
(a) the amounts set out
in the applicable tables for each of the spouses;
(b) the increased costs
of shared custody arrangements; and
(c) the conditions,
means, needs and other circumstances of each spouse and of any child for
whom support is sought.
Undue hardship
10. (1) On either
spouse's application, a court may award an amount of child support that
is different from the amount determined under any of sections 3 to 5, 8
or 9 if the court finds that the spouse making the request, or a child
in respect of whom the request is made, would otherwise suffer undue
hardship.
Circumstances that may
cause undue hardship
(2) Circumstances that
may cause a spouse or child to suffer undue hardship include the
following:
(a) the spouse has
responsibility for an unusually high level of debts reasonably incurred
to support the spouses and their children prior to the separation or to
earn a living;
(b) the spouse has
unusually high expenses in relation to exercising access to a child;
(c) the spouse has a legal duty under a judgment, order or written
separation agreement to support any person;
(d) the spouse has a
legal duty to support a child, other than a child of the marriage, who
is
(i) under the age of
majority, or
(ii) the age of majority
or over but is unable, by reason of illness, disability or other cause,
to obtain the necessaries of life; and
(e) the spouse has a
legal duty to support any person who is unable to obtain the necessaries
of life due to an illness or disability.
Standards of living
must be considered
(3) Despite a
determination of undue hardship under subsection (1), an application
under that subsection must be denied by the court if it is of the
opinion that the household of the spouse who claims undue hardship
would, after determining the amount of child support under any of
sections 3 to 5, 8 or 9, have a higher standard of living than the
household of the other spouse.
Standards of living
test
(4) In comparing
standards of living for the purpose of subsection (3), the court may use
the comparison of household standards of living test set out in Schedule
II.
Reasonable time
(5) Where the court
awards a different amount of child support under subsection (1), it may
specify, in the child support order, a reasonable time for the
satisfaction of any obligation arising from circumstances that cause
undue hardship and the amount payable at the end of that time.
Reasons
(6) Where the court makes
a child support order in a different amount under this section, it must
record its reasons for doing so.
ELEMENTS OF A CHILD
SUPPORT ORDER
Form of payments
11. The court may require
in a child support order that the amount payable under the order be paid
in periodic payments, in a lump sum or in a lump sum and periodic
payments.
Security
12. The court may require
in the child support order that the amount payable under the order be
paid or secured, or paid and secured, in the manner specified in the
order.
Information to be
specified in order
13. A child support order
must include the following information:
(a) the name and birth
date of each child to whom the order relates;
(b) the income of any
spouse whose income is used to determine the amount of the child support
order;
(c) the amount determined
under paragraph 3(1)(a) for the number of children to whom the order
relates;
(d) the amount determined
under paragraph 3(2)(b) for a child the age of majority or over;
(e) the particulars of
any expense described in subsection 7(1), the child to whom the expense
relates, and the amount of the expense or, where that amount cannot be
determined, the proportion to be paid in relation to the expense; and
(f) the date on which the
lump sum or first payment is payable and the day of the month or other
time period on which all subsequent payments are to be made.
VARIATION OF CHILD
SUPPORT ORDERS
Circumstances for
variation
14. For the purposes of
subsection 17(4) of the Act, any one of the following constitutes a
change of circumstances that gives rise to the making of a variation
order in respect of a child support order:
(a) in the case where the
amount of child support includes a determination made in accordance with
the applicable table, any change in circumstances that would result in a
different child support order or any provision thereof;
(b) in the case where the
amount of child support does not include a determination made in
accordance with a table, any change in the condition, means, needs or
other circumstances of either spouse or of any child who is entitled to
support; and
(c) in the case of an
order made before May 1, 1997, the coming into force of section 15.1 of
the Act, enacted by section 2 of chapter 1 of the Statutes of Canada,
(1997).
SOR/97-563, s. 2
SOR/00-337, s. 2
INCOME
Determination of
annual income
15. (1) Subject to
subsection (2), a spouse's annual income is determined by the court in
accordance with sections 16 to 20.
Agreement
(2) Where both spouses
agree in writing on the annual income of a spouse, the court may
consider that amount to be the spouse's income for the purposes of these
Guidelines if the court thinks that the amount is reasonable having
regard to the income information provided under section 21.
Calculation of annual
income
16. Subject to sections
17 to 20, a spouse's annual income is determined using the sources of
income set out under the heading "Total income" in the T1 General form
issued by the Canada Customs and Revenue Agency and is adjusted in
accordance with Schedule III.
SOR/00-337, s. 3
Pattern of income
17. (1) If the court is
of the opinion that the determination of a spouse's annual income under
section 16 would not be the fairest determination of that income, the
court may have regard to the spouse's income over the last three years
and determine an amount that is fair and reasonable in light of any
pattern of income, fluctuation in income or receipt of a non recurring
amount during those years.
SOR/00-337, s. 4
Non-recurring losses
(2) Where a spouse has
incurred a non-recurring capital or business investment loss, the court
may, if it is of the opinion that the determination of the spouse's
annual income under section 16 would not provide the fairest
determination of the annual income, choose not to apply sections 6 and 7
of Schedule III, and adjust the amount of the loss, including related
expenses and carrying charges and interest expenses, to arrive at such
amount as the court considers appropriate.
Shareholder, director
or officer
18. (1) Where a spouse is
a shareholder, director or officer of a corporation and the court is of
the opinion that the amount of the spouse's annual income as determined
under section 16 does not fairly reflect all the money available to the
spouse for the payment of child support, the court may consider the
situations described in section 17 and determine the spouse's annual
income to include
(a) all or part of the
pre tax income of the corporation, and of any corporation that is
related to that corporation, for the most recent taxation year; or
(b) an amount
commensurate with the services that the spouse provides to the
corporation, provided that the amount does not exceed the corporation's
pre-tax income.
Adjustment to
corporation's pre tax income
(2) In determining the
pre tax income of a corporation for the purposes of subsection (1), all
amounts paid by the corporation as salaries, wages or management fees,
or other payments or benefits, to or on behalf of persons with whom the
corporation does not deal at arm's length must be added to the pre-tax
income, unless the spouse establishes that the payments were reasonable
in the circumstances.
Imputing income
19. (1) The court may
impute such amount of income to a spouse as it considers appropriate in
the circumstances, which circumstances include the following:
(a) the spouse is
intentionally under-employed or unemployed, other than where the
under-employment or unemployment is required by the needs of a child of
the marriage or any child under the age of majority or by the reasonable
educational or health needs of the spouse;
(b) the spouse is exempt
from paying federal or provincial income tax;
(c) the spouse lives in a
country that has effective rates of income tax that are significantly
lower than those in Canada;
(d) it appears that
income has been diverted which would affect the level of child support
to be determined under these Guidelines;
(e) the spouse's property
is not reasonably utilized to generate income;
(f) the spouse has failed
to provide income information when under a legal obligation to do so;
(g) the spouse
unreasonably deducts expenses from income;
(h) the spouse derives a
significant portion of income from dividends, capital gains or other
sources that are taxed at a lower rate than employment or business
income or that are exempt from tax; and
(i) the spouse is a
beneficiary under a trust and is or will be in receipt of income or
other benefits from the trust.
SOR/00-337, s. 5
Reasonableness of
expenses
(2) For the purpose of
paragraph (1)(g), the reasonableness of an expense deduction is not
solely governed by whether the deduction is permitted under the Income
Tax Act.
Non-resident
20. Where a spouse is a
non resident of Canada, the spouse's annual income is determined as
though the spouse were a resident of Canada.
INCOME INFORMATION
Obligation of
applicant
21. (1) A spouse who is
applying for a child support order and whose income information is
necessary to determine the amount of the order must include the
following with the application:
(a) a copy of every
personal income tax return filed by the spouse for each of the three
most recent taxation years;
(b) a copy of every
notice of assessment and reassessment issued to the spouse for each of
the three most recent taxation years;
(c) where the spouse is an employee, the most recent statement of
earnings indicating the total earnings paid in the year to date,
including overtime or, where such a statement is not provided by the
employer, a letter from the spouse's employer setting out that
information including the spouse's rate of annual salary or
remuneration;
(d) where the spouse is
self-employed, for the three most recent taxation years
(i) the financial
statements of the spouse's business or professional practice, other than
a partnership, and
(ii) a statement showing
a breakdown of all salaries, wages, management fees or other payments or
benefits paid to, or on behalf of, persons or corporations with whom the
spouse does not deal at arm's length;
(e) where the spouse is a
partner in a partnership, confirmation of the spouse's income and draw
from, and capital in, the partnership for its three most recent taxation
years;
(f) where the spouse
controls a corporation, for its three most recent taxation years
(i) the financial
statements of the corporation and its subsidiaries, and
(ii) a statement showing
a breakdown of all salaries, wages, management fees or other payments or
benefits paid to, or on behalf of, persons or corporations with whom the
corporation, and every related corporation, does not deal at arm's
length;
(g) where the spouse is a
beneficiary under a trust, a copy of the trust settlement agreement and
copies of the trust's three most recent financial statements; and
(h) in addition to any
income information that must be included under paragraphs (c) to (g),
where the spouse receives income from employment insurance, social
assistance, a pension, workers compensation, disability payments or any
other source, the most recent statement of income indicating the total
amount of income from the applicable source during the current year, or
if such a statement is not provided, a letter from the appropriate
authority stating the required information.
SOR/00-337, s.6(1), (2)
Obligation of
respondent
(2) A spouse who is
served with an application for a child support order and whose income
information is necessary to determine the amount of the order, must,
within 30 days after the application is served if the spouse resides in
Canada or the United States or within 60 days if the spouse resides
elsewhere, or such other time limit as the court specifies, provide the
court, as well as the other spouse or the order assignee, as the case
may be, with the documents referred to in subsection (1).
Special expenses or
undue hardship
(3) Where, in the course
of proceedings in respect of an application for a child support order, a
spouse requests an amount to cover expenses referred to in subsection
7(1) or pleads undue hardship, the spouse who would be receiving the
amount of child support must, within 30 days after the amount is sought
or undue hardship is pleaded if the spouse resides in Canada or the
United States or within 60 days if the spouse resides elsewhere, or such
other time limit as the court specifies, provide the court and the other
spouse with the documents referred to in subsection (1).
Income over $150,000
(4) Where, in the course
of proceedings in respect of an application for a child support order,
it is established that the income of the spouse who would be paying the
amount of child support is greater than $150,000, the other spouse must,
within 30 days after the income is established to be greater than
$150,000 if the other spouse resides in Canada or the United States or
within 60 days if the other spouse resides elsewhere, or such other time
limit as the court specifies, provide the court and the spouse with the
documents referred to in subsection (1).
Making of rules not
precluded
(5) Nothing in this
section precludes the making of rules by a competent authority, within
the meaning of section 25 of the Act, respecting the disclosure of
income information that is considered necessary for the purposes of the
determination of an amount of a child support order.
Failure to comply
22. (1) Where a spouse
fails to comply with section 21, the other spouse may apply
(a) to have the
application for a child support order set down for a hearing, or move
for judgment; or
(b) for an order
requiring the spouse who failed to comply to provide the court, as well
as the other spouse or order assignee, as the case may be, with the
required documents.
Costs of the
proceedings
(2) Where a court makes
an order under paragraph (1)(a) or (b), the court may award costs in
favour of the other spouse up to an amount that fully compensates the
other spouse for all costs incurred in the proceedings.
Adverse inference
23. Where the court
proceeds to a hearing on the basis of an application under paragraph
22(1)(a), the court may draw an adverse inference against the spouse who
failed to comply and impute income to that spouse in such amount as it
considers appropriate.
Failure to comply with
court order
24. Where a spouse fails
to comply with an order issued on the basis of an application under
paragraph 22(1)(b), the court may
(a) strike out any of the
spouse's pleadings;
(b) make a contempt order
against the spouse;
(c) proceed to a hearing,
in the course of which it may draw an adverse inference against the
spouse and impute income to that spouse in such amount as it considers
appropriate; and
(d) award costs in favour
of the other spouse up to an amount that fully compensates the other
spouse for all costs incurred in the proceedings.
Continuing obligation
to provide income information
25. (1) Every spouse
against whom a child support order has been made must, on the written
request of the other spouse or the order assignee, not more than once a
year after the making of the order and as long as the child is a child
within the meaning of these Guidelines, provide that other spouse or the
order assignee with
(a) the documents
referred to in subsection 21(1) for any of the three most recent
taxation years for which the spouse has not previously provided the
documents;
(b) as applicable, any
current information, in writing, about the status of any expenses
included in the order pursuant to subsection 7(1); and
(c) as applicable, any
current information, in writing, about the circumstances relied on by
the court in a determination of undue hardship.
Below minimum income
(2) Where a court has
determined that the spouse against whom a child support order is sought
does not have to pay child support because his or her income level is
below the minimum amount required for application of the tables, that
spouse must, on the written request of the other spouse, not more than
once a year after the determination and as long as the child is a child
within the meaning of these Guidelines, provide the other spouse with
the documents referred to in subsection 21(1) for any of the three most
recent taxation years for which the spouse has not previously provided
the documents.
Obligation of
receiving spouse
(3) Where the income
information of the spouse in favour of whom a child support order is
made is used to determine the amount of the order, the spouse must, not
more than once a year after the making of the order and as long as the
child is a child within the meaning of these Guidelines, on the written
request of the other spouse, provide the other spouse with the documents
and information referred to in subsection (1).
Information requests
(4) Where a spouse or an
order assignee requests information from the other spouse under any of
subsections (1) to (3) and the income information of the requesting
spouse is used to determine the amount of the child support order, the
requesting spouse or order assignee must include the documents and
information referred to in subsection (1) with the request.
SOR/97-563, s. 3
Time Limit
(5) A spouse who receives
a request made under any of subsections (1) to (3) must provide the
required documents within 30 days after the request's receipt if the
spouse resides in Canada or the United States and within 60 days after
the request's receipt if the spouse resides elsewhere.
Deemed receipt
(6) A request made under
any of subsections (1) to (3) is deemed to have been received 10 days
after it is sent.
Failure to comply
(7) A court may, on
application by either spouse or an order assignee, where the other
spouse has failed to comply with any of subsections (1) to (3)
(a) consider the other
spouse to be in contempt of court and award costs in favour of the
applicant up to an amount that fully compensates the applicant for all
costs incurred in the proceedings; or
(b) make an order
requiring the other spouse to provide the required documents to the
court, as well as to the spouse or order assignee, as the case may be.
Unenforceable
provision
(8) A provision in a
judgment, order or agreement purporting to limit a spouse's obligation
to provide documents under this section is unenforceable.
Provincial child
support services
26. A spouse or an order
assignee may appoint a provincial child support service to act on their
behalf for the purposes of requesting and receiving income information
under any of subsections 25(1) to (3), as well as for the purposes of an
application under subsection 25(7).
COMING INTO FORCE
Coming into force
27. These Guidelines come
into force on May 1, 1997.
SCHEDULE I
(Subsection 2(1))
FEDERAL CHILD SUPPORT TABLES
Notes:
1. The federal child
support tables set out the amount of monthly child support payments for
each province on the basis of the annual income of the spouse ordered to
pay child support (the "support payer") and the number of children for
whom a table amount is payable. Refer to these Guidelines to determine
whether special measures apply.
2. There is a threshold
level of income below which no amount of child support is payable. Child
support amounts are specified for incomes up to $150,000 per year. Refer
to section 4 of these Guidelines to determine the amount of child
support payments for support payers with annual incomes over $150,000.
3. Income is set out in
the tables in intervals of $1,000. Monthly amounts are determined by
adding the basic amount and the amount calculated by multiplying the
applicable percentage by the portion of the income that exceeds the
lower amount within that interval of income.
Example:
Province: British
Columbia
Number of children: 2
Annual income of support payer: $33,760
Basic amount: $480
Percentage: 1.20%
Lower amount of the income interval: $33,000
The amount of monthly
child support is calculated as follows:
$480 + [1.2% x ($33,760 -
33,000)]
$480 + [1.2/100 x $760]
$480 + [0.012 x $760]
$480 + $9.12 = $489.12
4. There are separate
tables for each province. The amounts vary from one province to another
because of differences in provincial income tax rates. The tables are in
the following order:
(a) Ontario;
(b) Quebec;
(c) Nova Scotia;
(d) New Brunswick;
(e) Manitoba;
(f) British Columbia;
(g) Prince Edward Island;
(h) Saskatchewan;
(i) Alberta;
(j) Newfoundland;
(k) Yukon;
(l) Northwest Territories; and
(m) Nunavut.
5. The amounts in the
tables are based on economic studies of average spending on children in
families at different income levels in Canada. They are calculated on
the basis that child support payments are no longer taxable in the hands
of the receiving parent and no longer deductible by the paying parent.
They are calculated using a mathematical formula and generated by a
computer program.
6. The formula referred
to in note 5 sets support amounts to reflect average expenditures on
children by a spouse with a particular number of children and level of
income. The calculation is based on the support payer's income. The
formula uses the basic personal amount for non-refundable tax credits to
recognize personal expenses, and takes other federal and provincial
income taxes and credits into account. Federal Child Tax benefits and
Goods and Services Tax credits for children are excluded from the
calculation. At lower income levels, the formula sets the amounts to
take into account the combined impact of taxes and child support
payments on the support payer's limited disposable income.
SOR/99-136, s. 1
SCHEDULE II
(Subsection 10(4))
COMPARISON OF HOUSEHOLD STANDARDS OF LIVING TEST
Definitions
1. The definitions in this section apply in this Schedule.
"child"
« enfant »
"child" means a child of
the marriage or a child who
(a) is under the age of
majority; or
(b) is the age of
majority or over but is unable, by reason of illness, disability or
other cause to obtain the necessaries of life.
"household"
« ménage »
"household" means a
spouse and any of the following persons residing with the spouse
(a) any person who has a
legal duty to support the spouse or whom the spouse has a legal duty to
support;
(b) any person who shares
living expenses with the spouse or from whom the spouse otherwise
receives an economic benefit as a result of living with that person, if
the court considers it reasonable for that person to be considered part
of the household; and
(c) any child whom the
spouse or the person described in paragraph (a) or (b) has a legal duty
to support.
"taxable income"
« revenu imposable »
"taxable income" means
the annual taxable income determined using the calculations required to
determine "Taxable Income" in the T1 General form issued by the Canada
Customs and Revenue Agency.
SOR/97-563, s. 10
SOR/00-337, s. 7(1), (2)
Test
2. The comparison of
household standards of living test is as follows:
STEP 1
Establish the annual
income of each person in each household by applying the formula
A - B
where
A is the person's income
determined under sections 15 to 20 of these Guidelines, and
B is the federal and
provincial taxes payable on the person's taxable income.
Where the information on
which to base the income determination is not provided, the court may
impute income in the amount it considers appropriate.
STEP 2
Adjust the annual income
of each person in each household by
(a) deducting the
following amounts, calculated on an annual basis:
(i) any amount relied on
by the court as a factor that resulted in a determination of undue
hardship, except any amount attributable to the support of a member of
the household that is not incurred due to a disability or serious
illness of that member,
(ii) the amount that
would otherwise be payable by the person in respect of a child to whom
the order relates, if the pleading of undue hardship was not made,
(A) under the applicable
table, or
(B) as is considered by
the court to be appropriate, where the court considers the table amount
to be inappropriate,
(iii) any amount of support that is paid by the person under a judgment,
order or written separation agreement, except
(A) an amount already
deducted under subparagraph (i), and
(B) an amount paid by the
person in respect of a child to whom the order referred to in
subparagraph (ii) relates; and
(b) adding the following
amounts, calculated on an annual basis:
(i) any amount that would
otherwise be receivable by the person in respect of a child to whom the
order relates, if the pleading of undue hardship was not made,
(A) under the applicable
table, or
(B) as is considered by
the court to be appropriate, where the court considers the table amount
to be inappropriate.
(ii) any amount of child
support that the person has received for any child under a judgment,
order or written separation agreement.
SOR/97-563, s. 11(1), (2)
STEP 3
Add the amounts of
adjusted annual income for all the persons in each household to
determine the total household income for each household.
STEP 4
Determine the applicable low-income measures amount for each household
based on the following:
Low-income Measures
Household Size Low-income Measures Amount
One person
1 adult
$10,382
Two persons
2 adults
1 adult and 1 child
$14,535
$14,535
Low-income Measures
(cont’d)
Household Size Low-income Measures Amount
Three persons
3 adults
2 adults and 1 child
1 adult and 2 children
$18,688
$17,649
$17,649
Four persons
4 adults
3 adults and 1 child
2 adults and 2 children
1 adult and 3 children
$22,840
$21,802
$20,764
$20,764
Five persons
5 adults
4 adults and 1 child
3 adults and 2 children
2 adults and 3 children
1 adult and 4 children
$26,993
$25,955
$24,917
$23,879
$23,879
Six persons
6 adults
5 adults and 1 child
4 adults and 2 children
3 adults and 3 children
2 adults and 4 children
1 adult and 5 children
$31,145
$30,108
$29,070
$28,031
$26,993
$26,993
Seven persons
7 adults
6 adults and 1 child
5 adults and 2 children
4 adults and 3 children
3 adults and 4 children
2 adults and 5 children
1 adult and 6 children
$34,261
$33,222
$32,184
$31,146
$30,108
$29,070
$29,070
Eight persons
8 adults
7 adults and 1 child
6 adults and 2 children
5 adults and 3 children
4 adults and 4 children
3 adults and 5 children
2 adults and 6 children
1 adult and 7 children
$38,413
$37,375
$36,337
$35,299
$34,261
$33,222
$32,184
$32,184
STEP 5
Divide the household
income amount (Step 3) by the low-income measures amount (Step 4) to get
a household income ratio for each household.
STEP 6
Compare the household
income ratios. The household that has the higher ratio has the higher
standard of living.
SCHEDULE III
(Section 16)
ADJUSTMENTS TO INCOME
Employment expenses
1. Where the spouse is an
employee, the spouse's applicable employment expenses described in the
following provisions of the Income Tax Act are deducted:
(a) Repealed SOR/2000-337,
s. 8 (1);
(b) paragraph 8(1)(d) concerning expenses of teacher’s exchange fund
contribution;
(c) paragraph 8(1)(e) concerning expenses of railway employees;
(d) paragraph 8(1)(f) concerning sales expenses;
(e) paragraph 8(1)(g) concerning transport employee's expenses;
(f) paragraph 8(1)(h) concerning travel expenses;
(f.1) paragraph 8(1)(h.1) concerning motor vehicle travel expenses;
(g) paragraph 8(1)(i) concerning dues and other expenses of performing
duties;
(h) paragraph 8(1)(j) concerning motor vehicle and aircraft costs;
(i) paragraph 8(1)(l.1) concerning Canada Pension Plan contributions and
Employment Insurance Act premiums paid in respect of another employee
who acts as an assistant or substitute for the spouse;
(j) paragraph 8(1)(n) concerning salary reimbursement;
(k) paragraph 8(1)(o) concerning forfeited amounts;
(l) paragraph 8(1)(p) concerning musical instrument costs; and
(m) paragraph 8(1)(q) concerning artists' employment expenses.
SOR/97-563, s. 12
SOR/00-337, s. 8(1), (2)
Child support
2. Deduct any child
support received that is included to determine total income in the T1
General form issued by the Canada Customs and Revenue Agency.
SOR/97-563, s. 13
SOR/00-337, s. 9
Spousal support
3. (1) To calculate
income for the purpose of determining an amount under an applicable
table, deduct the spousal support received from the other spouse.
Special or extraordinary
expenses
(2) To calculate income
for the purpose of determining an amount under section 7 of these
Guidelines, deduct the spousal support paid to the other spouse.
Social assistance
4. Deduct any amount of
social assistance income that is not attributable to the spouse.
SOR/00-337, s. 10
Dividends from taxable
Canadian corporations
5. Replace the taxable
amount of dividends from taxable Canadian corporations received by the
spouse by the actual amount of those dividends received by the spouse.
Capital gains and capital
losses
6. Replace the taxable
capital gains realized in a year by the spouse by the actual amount of
capital gains realized by the spouse in excess of the spouse's actual
capital losses in that year.
Business investment
losses
7. Deduct the actual
amount of business investment losses suffered by the spouse during the
year.
Carrying charges
8. Deduct the spouse's
carrying charges and interest expenses that are paid by the spouse and
that would be deductible under the Income Tax Act.
Net self-employment
income
9. Where the spouse's net
self-employment income is determined by deducting an amount for
salaries, benefits, wages or management fees, or other payments, paid to
or on behalf of persons with whom the spouse does not deal at arm's
length, include that amount, unless the spouse establishes that the
payments were necessary to earn the self-employment income and were
reasonable in the circumstances.
Additional amount
10. Where the spouse
reports income from self employment that, in accordance with sections
34.1 and 34.2 of the Income Tax Act, includes an additional amount
earned in a prior period, deduct the amount earned in the prior period,
net of reserves.
SOR/00-337, s. 11
Capital cost allowance
for property
11. Include the spouse's
deduction for an allowable capital cost allowance with respect to real
property.
Partnership or sole
proprietorship income
12. Where the spouse
earns income through a partnership or sole proprietorship, deduct any
amount included in income that is properly required by the partnership
or sole proprietorship for purposes of capitalization.
SOR/97-563, s. 14
Employee stock options
13. (1) Where the spouse
has received, as an employee benefit, options to purchase shares of a
Canadian-controlled private corporation, or a publicly traded
corporation that is subject to the same tax treatment with reference to
stock options as a Canadian-controlled private corporation, and has
exercised those options during the year, add the difference between the
value of the shares at the time the options are exercised and the amount
paid by the spouse for the shares, and any amount paid by the spouse to
acquire the options to purchase the shares, to the income for the year
in which the options are exercised.
SOR/01-292, s. 1
Disposal of shares
(2) If the spouse has
disposed of the shares during a year, deduct from the income for that
year the difference determined under subsection (1).
SOR/00-337, s. 12
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