Monthly Archives: December 2009

A Brief Note on Child Support and Extraordinary Expenses – What Counts?

Posted in: "All, "Brief Note" Series, Family Law, Legalese Dictionary by Admin | 2 Comments Friday, December 4, 2009

As I mentioned in my blog yesterday (“A Brief Note on Child Support and Undue Hardship“), there are two kinds of child support payable in Ontario – the basic amount and the extraordinary amount. While the basic amount refers to the amount set out in the Child Support Guidelines,* what constitutes “extraordinary expenses” is subject to interpretation.

For the purposes of this blog, we will refer to the federal version of the Guidelines.

According to the regulation, the term “extraordinary expenses” means “expenses that exceed those that the spouse requesting an amount for the extraordinary expenses can reasonably cover, taking into account that spouse’s income and the amount that the spouse would receive under the applicable table.”

In plain language, the term refers to the extra costs of raising the children that the recipient spouse can not seasonably afford on his or her own. The granting of extraordinary expenses means that the other spouse will have to help pay part of these costs.

Examples of extraordinary expenses may include the following:

  • child care expenses
  • medical and dental insurance premium attributed to the child
  • tuition or fees for educational programs to meet the child’s particular needs
  • expenses for post-secondary education
  • costs for extracurricular activities

In determining whether the extraordinary expenses are allowable, the court may also consider the following:

  • the amount of expense in relation to the income of the spouse requesting such expenses
  • the nature and number of the educational programs and extracurricular activities
  • any special needs and talents of the children
  • the overall cost of the program and activities

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A Brief Note on Child Support and Undue Hardship

Posted in: "All, "Brief Note" Series, Family Law, Legalese Dictionary by Admin | No Comments Thursday, December 3, 2009

In Ontario there are two kinds of child support payable – the basic amount and the extraordinary amount. (For more information, see my December 4 blog “A Brief Note on Child Support and Extraordinary Expenses.”)

The basic amount (also called “table amount”) of child support payable is determined solely by the income level of the support payor under the Child Support Guidelines.* In other words, the income level of the recipient is irrelevant for the purpose of determining the basic amount payable.

Exceptions to the basic amount are few. The most commonly seen exception is for “undue hardship.”

For the purposes of this blog, we will limit the discussion to the federal Child Support Guidelines, enacted under the Divorce Act.+

There are several circumstances that may support the claim of undue hardship: an unusually high level of debts incurred to support the receiving spouse and children prior to the separation or to earn a living; unusually high expenses in relation to exercising access; and a legal duty to support another person.^

However, to claim undue hardship, the court must consider differences of living standards between the households. Under the law, the claim for must be denied if the court determines that the household of the spouse claiming undue hardship would have a higher standard of living than the household of the other spouse.

In comparing standards of living, the court would follow the schedule under the regulation, which provides an elaborate calculation formula. The formula provided is complicated, to say the very least, especially if you attempt to do the calculation with pen and paper. Therefore, most family law practitioners use a specialized computer program.

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A Brief Note on the Limitation Period in Ontario

Posted in: "All, "Brief Note" Series, Legalese Dictionary by Admin | No Comments Thursday, December 3, 2009

“Limitation period” is a legal jargon meaning a statutory term after which a lawsuit (or prosecution) cannot be brought in court.

In Ontario the limitation period is governed by the Limitations Act, 2002. It’s interesting to note that in contrast to the law in other countries, such as the US, the Ontario Act is not applicable to offences under the Criminal Code^ because the Code falls under federal jurisdiction.

The basic limitation period in Ontario is two years from the day on which the claim was discovered.# For example, if you were involved in an automobile accident and suffered minor injuries, you would have to bring your claim before the court within two years, or your claim may be barred by the statute.

Nonetheless, the Act provides numerous exceptions under which the limitation period may differ from the basic two-year rule. Therefore, in the event that you wish to commence a proceeding, you should act promptly and consult with a lawyer to ensure that your claim is not barred by the statute.

*S.O. 2002, c. 24, Sch. B

^R.S.C. 1985, c. C-46

# Limitations Act, 2002, s. 4, 5

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A Brief Note on Income Tax and Jail Time

Posted in: "All, "Brief Note" Series, Administrative Law, Business Development by Admin | No Comments Wednesday, December 2, 2009

Under the Canada Income Tax Act,* most disputes are processed administratively through assessments and re-assessments. If a taxpayer disagree with the Minister’s assessment, the taxpayer may institute a civil proceeding before the Tax Court. These proceedings are civil in nature and generally don’t result in imprisonment, unless the taxpayer is prosecuted criminally.

As it turns out, unlike its US counterpart, the Canada Revenue Agency doesn’t conduct criminal prosecutions. Criminal prosecutions under the Act are referred to the Department of Justice, which considers criminal charges based on evidence.

The offcences that may result in criminal prosecutions are listed in sections 238 to 243 under the Act. Below is a partial list of the offences:

  • failing to file or make a return
  • false or deceptive statements
  • destruction of records
  • false entries
  • evasion of tax
  • conspiracy to commit an offence

Penalties range from a fine to a jail term not exceeding 5 years.

Don’t do the crime or you’ll pay the fine (or do the time).

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