Ineligible to sponsor - self employed

[kimiram]

Hi All,
I received an email from CIC saying that my net income based on NOA is not eligible to sponsor my parents. In year 2014 I was salaried and met the required amount for 4 dependents. for year 2015 and 2016 I worked as self-employed and ran payroll much less than my salaried income. Looks like my NOA is based on my payroll deductions and highlighted that my income is not eligible for year 2015 and 2016. Buy my incorporation have rest of my income which is well ahead of minimum required net income for 4 dependents. Have anyone came across such rejection? please help and advise how to explain CIC about my net income? Thanks in advance.

 

[scylla]

Hi All,
I received an email from CIC saying that my net income based on NOA is not eligible to sponsor my parents. In year 2014 I was salaried and met the required amount for 4 dependents. for year 2015 and 2016 I worked as self-employed and ran payroll much less than my salaried income. Looks like my NOA is based on my payroll deductions and highlighted that my income is not eligible for year 2015 and 2016. Buy my incorporation have rest of my income which is well ahead of minimum required net income for 4 dependents. Have anyone came across such rejection? please help and advise how to explain CIC about my net income? Thanks in advance.

You were correctly refused and do not meet the minimum income requirements to sponsor your parents.

Only personal income is considered for parent / grandparent sponsorship. Your corporation's income cannot be counted towards the minimum income requirement.

Once you meet the minimum income requirements for three years in a row through personal income, you will need to enter the sponsorship lottery and wait to be selected - and then apply again from scratch.

 

[Rob_TO]

Hi All,
I received an email from CIC saying that my net income based on NOA is not eligible to sponsor my parents. In year 2014 I was salaried and met the required amount for 4 dependents. for year 2015 and 2016 I worked as self-employed and ran payroll much less than my salaried income. Looks like my NOA is based on my payroll deductions and highlighted that my income is not eligible for year 2015 and 2016. Buy my incorporation have rest of my income which is well ahead of minimum required net income for 4 dependents. Have anyone came across such rejection? please help and advise how to explain CIC about my net income? Thanks in advance.

As mentioned, you were correctly refused. You are sponsoring your parents, not your corporation. So the company's income reported on taxes is completely irrelevant, all that matters is what you show on your personal income tax return.

You should have adjusted your own income to show more money as your own personal income (and paid appropriate taxes), and less as income to the corporation. Not sure if it's too late now to do re-assessments for 2015/2016 tax years, I imagine you'd be looking at lots of penalties or back-interest owed.

 

[Wonderland_1010]

Hi All,
I received an email from CIC saying that my net income based on NOA is not eligible to sponsor my parents. In year 2014 I was salaried and met the required amount for 4 dependents. for year 2015 and 2016 I worked as self-employed and ran payroll much less than my salaried income. Looks like my NOA is based on my payroll deductions and highlighted that my income is not eligible for year 2015 and 2016. Buy my incorporation have rest of my income which is well ahead of minimum required net income for 4 dependents. Have anyone came across such rejection? please help and advise how to explain CIC about my net income? Thanks in advance.

As mentioned, you were correctly refused. You are sponsoring your parents, not your corporation. So the company's income reported on taxes is completely irrelevant, all that matters is what you show on your personal income tax return.

You should have adjusted your own income to show more money as your own personal income (and paid appropriate taxes), and less as income to the corporation. Not sure if it's too late now to do re-assessments for 2015/2016 tax years, I imagine you'd be looking at lots of penalties or back-interest owed.

If OP issues a T5 under Dividends or T4 for salaries for 2015 & 2016, they will have the chance of CRA coming for audits as well. But yes you should have taken some sort of salary or dividends and had your company issue a T slip so you could have claimed it in your tax return.

 

[kimiram]

You were correctly refused and do not meet the minimum income requirements to sponsor your parents.

Only personal income is considered for parent / grandparent sponsorship. Your corporation's income cannot be counted towards the minimum income requirement.

Once you meet the minimum income requirements for three years in a row through personal income, you will need to enter the sponsorship lottery and wait to be selected - and then apply again from scratch.

Thanks Scylla. My bad, I should have checked before, underestimated payroll importance.

 

[K0c4nbi3t]

Hi how about your case?? Did they consider net incomes?? I dont think so, because net incomes are lower than gross income alot. I gues bz you were sefl-employed. Thats why then only consider it