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Difference between revisions of "Indigenous Families"
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→Child support and spousal support
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==Child support and spousal support== | ==Child support and spousal support== | ||
Exactly the same rules apply to Aboriginal parents as apply to non-Aboriginal parents when it comes to paying child support. | Exactly the same rules apply to Aboriginal parents as apply to non-Aboriginal parents when it comes to paying child support and spousal support. | ||
There is, however, one significant additional issue. Aboriginal people who qualify as "status Indians" under the federal ''Indian Act'' and who live on reserve may not be required to pay income tax. Because the [[Child Support Guidelines]] are based on the assumption that the payor of child support is also paying income tax, the standard method of calculating income under the Guidelines would give a distorted result. | There is, however, one significant additional issue about the calculation of income for the purposes of support calculations. Aboriginal people who qualify as "status Indians" under the federal ''Indian Act'' and who live on reserve may not be required to pay income tax. Because the [[Child Support Guidelines]] are based on the assumption that the payor of child support is also paying income tax, the standard method of calculating income under the Guidelines would give a distorted result. | ||
Under s. 19(1)(b) of the Guidelines, a tax-exempt payor may have his or her income ''grossed up'' to <span class="noglossary">account</span> for this tax advantage. The grossing-up process essentially involves figuring out how much money a taxed payor would have to earn to have the tax-exempt person's income once income taxes are taken off. | Under s. 19(1)(b) of the Guidelines, a tax-exempt payor may have his or her income ''grossed up'' to <span class="noglossary">account</span> for this tax advantage. The grossing-up process essentially involves figuring out how much money a taxed payor would have to earn to have the tax-exempt person's income once income taxes are taken off. | ||
