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original sworn financial statement

can I ask the court to show reason why you should not be forced to provide the CSA with the same figures he provided the family court or it least explain himself?

In my husband's original sworn financial statement he stated his income was over $110,000 per annum yet in the same month he informed the CSA his income was only 20,000 per annum. When we pointed this out to the CSA they informed us that they could not use this information as it had been provided for use in the family court?

My question is we are about to go back to court for various other matters can I ask the court to show reason why you should not be forced to provide the CSA with the same figures he provided the family court or it least explain himself?

And if this is possible how would I word it in the application?
Pinhead said
My question is we are about to go back to court for various other matters can I ask the court to show reason why you should not be forced to provide the CSA with the same figures he provided the family court or it least explain himself?

I don't believe that the courts would be able to entertain either, and would likely simply say that it is the role of the CSA in regards to assessment and obtaining such information. If you used/misused the court in this way it could perhaps be detrimental, it could have no bearing at all or it could be a positive.

Normally the CSA will use the previous years taxable income (i.e. currently the tax return for 2010-2012). As such it would appear that the other parent has put in an income estimate and that the CSA accept that the estimate is not at fault (i.e. they haven't rejected it, which they can:

The CSA Guide - 2.5.1: Income estimates for a year of income (Extract) said
Refusing to accept an income estimate

CSA can refuse to accept an income estimate election for a full year if it is satisfied that the parents adjusted taxable income (including their overseas income for a parent resident in a reciprocating jurisdiction) for the year of income is likely to be higher than their estimated amount (section 63AA(1)).

CSA can refuse to accept an income estimate election for part of a year of income if it is satisfied that:

    the parents partial year income amount is less than what CSA considers is likely to be the parents actual adjusted taxable income for the remaining period in relation to the income election (section 63AA(2)(a)); or
    the total of the income component amounts for the year to date income amount is more than the amount that CSA considers is likely to be the total of the actual income component amounts (section 63AA(2)(b)).

CSA can refuse to accept a later income estimate election made under section 62A if it is satisfied that the parents partial year income amount is less than what CSA considers is likely to be the parents actual adjusted taxable income for the remaining period in relation to the income election (section 63AA(3)).

CSA will consider all the circumstances and may obtain further information, either from the parent or a third party (e.g. an employer or an overseas authority) (section 63AA(4)). A history of underestimating alone is not enough for CSA to refuse to accept an estimate however it may prompt CSA to investigate the circumstances further.

CSA will give a parent the opportunity to show that their estimate is accurate before it refuses to accept an estimate.
Examples said
Example

F contacts CSA on 26 July to advise that they lost their job on 15 July. F is currently assessed on $75,000, the income from the last relevant year of income. F wants to estimate their income for the remainder of the year of income. The start date of the election is 26 July. F advises that their income for the remaining period will be $10,000, made up of some interest income and income from some casual employment. F states that they are currently unemployed and not entitled to receive any pension or benefits, due to the income of their partner. F advises they do not have any other income components.

CSA considers Fs income history and previous estimate records. It notes that F has a seasonal pattern to their employment, that F frequently ceases employment in July/August and then becomes employed again several months later. F has been employed by the same employer for a number of years. CSA asks F to provide documentation from the employer to confirm that future employment is unlikely, that the previous pattern of employment is no longer relevant.

F does not provide the requested documentation. CSA refuses to accept the income estimate election as it considers it likely that the partial year income amount provided by F is less than the actual amount F is likely to receive in the remaining period (section 63AA(2)(a)).
Example

M contacts CSA on 26 August to advise that they lost their job on 15 August. M is currently assessed on $75,000, the income from the last relevant year of income. M wants to estimate their income for the remainder of the year of income. The start date of the election is 26 August. They advise that their income for the remaining period will be $10,000, made up of some interest income and income from some casual employment. M is not entitled to receive any pension or benefits, due to the income of their partner. M advises they do not have any other income components. M advises that they received a redundancy package from their previous employer, where they had worked for 5 years. M advises that their year to date income is $90,000. CSA requests documentation regarding the year to date income in order to be satisfied that the year to date amount is accurate.

M does not provide the requested documentation. CSA refuses to accept the income estimate election under as it considers it likely that the year to date income amount provided by M is more than the actual amount M received in the year to date period (section 63AA(2)(b)).
If CSA refuses to accept an estimate, it will give the parent written notice of the decision (section 63AB). The parent can object to the particulars of the assessment in relation to which the parent sought to make the income election (section 63AB(2)).

If an estimate, upon reconciliation, is found to be under by more than 10% then (i.e. the reconciliation is 100% or greater than the estimate), penalties will be imposed:

The CSA Guide - 2.5.1: Income estimates for a year of income (Extract) said
Estimate penalties

A person will be required to pay an estimate penalty when CSA reconciles their estimate and their actual income for a year of income less any applicable year to date income amount is 110%, or more, of their estimated ATI for the year (section 64AF).

The penalty is 10% of the difference between the liability that would have applied if the original estimate or estimates was used to calculate the assessment, and the assessment(s) amended under section 64AA following reconciliation (section 64AG(1)). An estimate penalty is a debt due to the Commonwealth (section 64AG(2)).

Remission of estimate penalties

CSA can remit an estimate penalty, either in whole or in part, (section 64AH(1)) where:

    the difference between the adjusted taxable income amount and the estimated income was due to an amendment of the tax legislation, or a change to a ruling or determination under the tax legislation, or
    CSA is satisfied that it would be fair and reasonable to remit the penalties in the circumstances.

Amendment of a tax law, ruling or determination

When making an estimate, a parent cannot be expected to know that a change to the tax legislation or a change to a ruling or determination will increase their adjusted taxable income.
Example(s) said
Example

If an expense that was deductible in previous years is no longer deductible, a parents taxable income may be higher than their estimate by the amount of the deduction.

This does not apply where a parents taxable income is amended for other reasons (for example, taxpayer error).

Fair and reasonable to remit the penalties in the circumstances

What is fair and reasonable depends on the circumstances of each case. Those circumstances do not need to be special, exceptional or unusual. CSA will remit estimate penalties if it considers the parent did not intentionally misuse the estimate provisions.

CSA may consider remitting if the person inadvertently underestimated or had some good reason for not correctly managing their income estimate during the year, such that it would not be fair to penalise them for the estimate being inaccurate.

CSA will consider whether a parent was or should have been aware of the conditions and implications of using an estimate.

A parent should use reasonable care and all information available to estimate their income. If their circumstances change, they should advise CSA of the change in circumstances and make a new estimate.

CSA will not remit an estimate penalty unless a parent has a reasonable explanation for failing to make a new estimate when their circumstances changed.
Example(s) said
Example

M made their first estimate when their hours of work were reduced due to a fall in business for the company. M made a second estimate when they lost their job because the company stopped trading.  M was not sure if they would receive a termination payment, and did not include such a payment in their second estimate. M did in fact receive a termination payment of $9,000 on 30 May. As their ongoing circumstances had not changed M did not contact CSA about the payment.

Ms actual income was higher than their estimated income so the estimate was reconciled, the assessment amended and an estimate penalty imposed. M contacted CSA and requested the estimate penalty be remitted. CSA considered the facts of the case and decided it would be fair and reasonable to remit the penalty, as M had not intentionally misused the estimate provisions.
CSA will remove any penalty that has been imposed incorrectly (for example, through error or miscalculation, or by a subsequent variation which decreases the liability).

If CSA makes a decision to remit only part of the penalty, or to not remit any part of the penalty, it must give written notice of that decision to the parent required to pay the penalty. The parent may object to that decision (section 64AH(2)).
WA exnuptial cases

The information in this chapter applies to WA ex-nuptial cases from a later date than for other cases.

See Chapter 1.4.3 for details of the date from which various provisions had effect for WA ex-nuptial cases.

Here's a link to The CSA Guide - 2.5.1: Income estimates for a year of income

Another option could be to request a "Change of Assessment under Reason 8 (a parent's income, property, financial resources, or earning capacity)". Here's a link to The CSA Guide - Reason 8 - a parent's income, property, financial resources, or earning capacity
Pinhead said
In my husband's original sworn financial statement he stated his income was over $110,000 per annum yet in the same month he informed the CSA his income was only 20,000 per annum. When we pointed this out to the CSA they informed us that they could not use this information as it had been provided for use in the family court?

 

I'm surprised that the CSA has told you this, as I had legal advice that financial statements to the court most definitely can be used as evidence of income to the CSA, and am in fact using same for that purpose at the very moment. The CSA seems very erratic in their advice, it might be worth asking to speak to a different or more senior officer about this.
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