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running a small business


Hi MikeT,

I found this on the link that you provided (thanks :) but the link to "additional earning capacity" doesn't lead anywhere that explains the term.  Does it apply only to additional earning capacity directly from the business or could it be from other pursuits?


"Low income from a family business
A parent who receives a low taxable income from a family business may have access to additional financial resources, or alternatively he or she may have an additional earning capacity.

In determining the parent's financial resources, the Registrar may consider the following factors:

past or current ability to maintain a particular lifestyle and acquire assets;
identification of additional benefits obtained from the business;
whether or not the business has been structured to minimise a parent's income including: the degree of control which the parent has over the business or the person who is entitled to the profits of the business, or whether income splitting is occurring; and
the person who actually does the work of the business.
The Registrar may determine that a parent's income is greater or lower than the amount upon which they have been assessed. Alternatively, the Registrar may decide that the parent's financial resources give the parent a greater capacity to contribute to the financial support of the child than is indicated by the assessment."


As per my response in your other post. The legislation is weighted to increasing CS and one of the ways is to be very non-specific leaving a great deal of room for interpretation. This is then compounded by the very low requirement of expertise in legislative interpretation (any with skills would be very unlikely to take the very low rate of pay offered by the CSA), basically you have people off the street making judicial determinations.
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