Nailed STBX and her lawyer on tax returns!!

[plainNamedDad44]

Hi,

STBX's counsel unsuccessfully argued that C/S should terminate based on STBX's 2016 NOA. I was prepared and showed how most of the expenses (rental income) STBX claimed were false, unsubstantiated, or disallowed.

STBX's counsel reverted to the 2016 NOA in her arguments, to which the Justice noted 'the NOA is a starting point for the consideration of C/S'

lesson:

DONT ROLE OVER regarding C/S based on an NOA !!!!


Hope this helps someone else.

PND

[arabian]

continued good news for you!

I have always maintained that NOA's are useless unless used to corroborate the fact that the individual did indeed file their taxes.

[denbigh]

Im not sure I understand, why are they useless? How else would you show what you earned? Maybe for businesses they aren't as useful?

[plainNamedDad44]

Im not sure I understand, why are they useless? How else would you show what you earned? Maybe for businesses they aren't as useful?

For landlords and self employed people, you have to dig a bit deeper.... i.e. income statements.

[OrleansLawyer]

why are they useless? How else would you show what you earned?

The notice of assessment shows income declared, however it is possible to subsume regular income in expense deductions. These expense deductions may be the usual tax-evasion of the self-employed (claim higher % of vehicle expense is for work, personal meals as business entertainment, etc) or they could be legitimate expenses for CRA that do not apply for child support.

If someone has a business with a gross revenue of $300k, with expenses of $100k to salaries, $50k to office expenses, $50k to entertainment, and $50k to advertising, their NOA will show an income of $50k less personal deductions (employer's side of CPP, RRSP deposits, etc).

However, if you are the support recipient, you may be more interested in the $50k of entertainment and $50k of advertising. Is their personal vehicle a 100% advertisement cost because it has a bumper sticker? Do they stick every personal purchase (food, alcohol, restaurants, netflix...) under entertainment? By only looking at the NoA you lose the opportunity to double check their deductions.

[arabian]

OrleansLawyer - as usual you have an eloquent way of stating things. I totally agree with you and personally did successfully challenge all of my ex's stated "business operating expenses."