Self Employed Gross income vs Notice of Assessment income for child support

[momto3]

I was wondering if anyone could help with some guidance. My ex is self-employed (realtor) not a company. His T4A amounts 2005 $123,859/ 2006 $84,039/ 2007 $186,501/ 2008 $105,335 / 2009 $60,787 (funny we separated at the end of 2008. His Notice of Assessment Income for the same years were 2005 $49,542/ 2006 $15,593/ 2007 $47,507/ 2008 $31,102 and 2009 $25,676.

I requested an order for an income valuation because I believed that he was hiding income when it dropped so drastically after we separated. The income valuation came back supporting his numbers, it was also done by an accountant who happens to be a tenant of my ex-father-in-law and my ex-father-in-law is also a CA and CMA.

My question is how do I challenge these numbers to a judge? I was reading the Family Law Act Child Support Guidelines and it states that a Judge will impute income if "parent or spouse unreasonably deducts expenses from income" and "For the purpose 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 (Canada). O. Reg. 391/97, s. 19 (2)." Would I have an arguement to dispute the amount of his deductions?

Thanks

 

[Berner_Faith]

It depends... did he deduct the same things after your separating as he did when you were together? If nothing has changed in what he has deducted I don't know how you think you can argue it, as it was the same when you were together as it is now. Do you have proof of his deductions? (I don't know anything about self-employed or how the taxes work)

As for the drop in income, could it be the market was just not there? Being a realtor there is going to be a lot of fluctuations in income. I mean his 2006 income was drastically lower than his 2007, was this due to the market?

 

[NBDad]

You separated, around the same time as the economy tanked. He can easily justify the drop in income. Less time to work given he was dealing with the issues surrounding separation/etc.

You have had an independent income valuation done and it supports HIS numbers. Members of professional organizations risk their accreditation if they falsify info, so I highly doubt someone would risk their livelihood like that.

His numbers did not just fluctuate after you separated, there was a good deal of variation pre-2008 as has been pointed out.

T4A fluctuations:
05-06 = -40K
06-07 = +100K
07-08 = -80K
08-09 = -40K

T4 Fluctuations:

05-06 = -30K
06-07 = +32K
07-08 = -15K
08-09 = -6K

Huge amount of variance across the board. If you are hell bent on challenging it, you need a forensic audit to be performed, at a cost upwards of 10K? at least. Since you are rejecting both his numbers AND the valuation he had done at your request, you will likely bear the brunt of the cost for investigating it.

In all honesty, from what you have provided, you are NOT looking at that much of a difference in income. He has a proven and verifiable history of massive deviations in income year to year, as his income is heavily reliant on the market, and the economy. You are probably best to focus your efforts on other things.