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Difference between revisions of "Indigenous Families"
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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 account 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. | ||
Think of it like this: | Think of it like this: | ||