Difference between revisions of "Indigenous Families"

Indigenous Families (view source)

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 Exactly the same rules apply to Aboriginal parents as apply to non-Aboriginal parents when it comes to paying child support.
-There is, however, one significant additional issue.
+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 a payor is paying income tax, the standard method of calculating income under the Guidelines would give a distorted result.
-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 a payor is 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.