When will a court set a payor’s average income under s. 16 of the Income Tax Code?
British Columbia, Canada
The following excerpt is from M.Y.T.C. v L.H.N., 2018 BCSC 1174 (CanLII):
In evaluating fairness, it is crucial for the court to consider the reasons which gave rise to the difference between the two figures and for the court to examine whether any increases or decreases in income are likely to be permanent. If there is a degree of permanence associated with an increase or decrease in income, the s. 16 determination of income may be the fairest determination: Fuzi v. Fuzi. Conversely, if the court concludes that s. 16 would not fairly determine a payor’s annual income, the court may set the income at an amount it deems fair and reasonable: Grossi v. Grossi, 2005 BCCA 47 at para. 25. If a payor’s income historically fluctuates, is unpredictable, or the estimate of current income is not reliable, the usual approach endorsed by the authorities is to average income in accordance with s. 17: J.E.H. v. P.L.H., 2013 BCSC 752 at para. 167.
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
How is a payor's income calculated when the payor’s income has fluctuated in previous years? (British Columbia, Canada)
What is the impact of Canada on a payor's income under section 19(1)(c) of the Income Tax Code? (British Columbia, Canada)
Does s. 3(2)(b) of the Income Tax Code require spouses to share expenses with each other in proportion to their respective incomes? (British Columbia, Canada)
What is the test for income before a court to determine a spouse’s income? (British Columbia, Canada)
Can a judge impute income on the basis of an average income over a period of three years? (British Columbia, Canada)
Does a post-separation disparity in income between the payor and payor spouse need to be a basis for non-compensatory spousal support? (British Columbia, Canada)
In what circumstances will a trial court order permanent spousal support for the payor husband, even if the husband’s income is uncertain? (British Columbia, Canada)
What is the effect of s. 52(1) of the Criminal Code of Canada's Criminal Code when a court issues a declaration of invalidity? (British Columbia, Canada)
Is a self-employed real estate agent who receives income through his Personal Preference Tax Credit (PTC) entitled to income from a spouse's pre-tax income? (British Columbia, Canada)
Can a court impute income to a spouse or former spouse under section 19 of the Income Tax Guidelines? (British Columbia, Canada)
