The applicants would need to ensure that they provide all the required information regarding the income they have earned over the 12 months prior to the mailing of their application. This typically relates to the information they will provide in questions 10 to 14. Similarly, if the applicants have a co-signer, they would need to specify the income earned by the co-signer over the same period. They will need to specify these details while answering questions 15 to 19.
In some situations, the office processing the application might ask the applicant to provide additional information and documentation. This is particularly so, if the office is not satisfied that the applicant has provided sufficient evidence for sustaining the applicant’s income calculation.
Applicants would need to note that their available income refers to the amount of money they have earned in the period of 12 months prior to the date of their applications. It also excludes any allowances or benefits of the type described in 12.B given subsequently in this document.
The applicants would need a document called an “Option – C Printout”. This would enable them to calculate their available income. This document is the equivalent of the last notice of assessment that applicants would typically have received in respect of the most recent taxation year. As such, it would serve as the basis for the calculation of their income. The Canada Revenue Agency (CRA, formerly CCRA) issues this printout. Applicants would need to call 1 800 959 8281 for obtaining a copy free of charge. In case the applicant’s spouse or common-law partner is co-signing the undertaking, they would need to obtain a copy of the “Option – C Printout” as well.
Situations could arise where the applicants:
- Are unable to obtain and produce an “Option – C Printout” or,
- Have an income specified in this document that is less than their minimum necessary income
In this scenario, the applicants would need to provide documentation that establishes the amount of income they have earned over the period of 12 months prior to the date of their application. This documentation could typically include:
- Pay stubs (if the applicants are employed)
- A statement of business of activities (if the applicants are self-employed)
- Bank statements (if the applicants have received interest income)
- Statements or certificates (if the applicants have other sources of income such as investments, rentals, pensions or special benefits payable under the Employment Insurance Act)
The applicant’s spouse or common-law partner would also need to provide similar documentation. This is especially so if the applicant’s spouse or common-law partner is co-signing the undertaking and:
- Does not provide an “Option – C Printout” or,
- If the income reported on your spouse or common-law partner’s “Option – C Printout”, when combined with your available income, is less than your minimum necessary income
Applicants would need to complete question 12 on the Financial Evaluation form, based on the calculations specified in their “Option – C Printout”. This would enable them to calculate their earned income. The authorities have provided the relevant instructions for completing this question subsequently in this document.
Similarly, applicants would need to complete question 13 on the Financial Evaluation form, based on the relevant calculations for the preceding 12 months. However, they would only need to complete this question if:
- They are not producing an “Option – C Printout” or,
- Their total income calculated in question 12 of the Financial Evaluation form is less than their minimum necessary income
Applicants would need to note that the greater of the two amounts they enter in 12.C and 13.C denotes their available income. Therefore, they would need to enter this amount in box 14.
In case the applicant’s spouse or common-law partner is co-signing the undertaking, the applicant would need to complete:
- Question 17 (the calculation based on the “Option – C Printout”) and / or,
- Question 18 (the calculation based on the preceding 12 months)
This would enable the applicants to calculate their earned income. Thereafter, the applicant would need to enter the greater of the two amounts at 17.C and 18.C in box 19. This amount would denote the available income of the applicant’s co-signer.
It is worth highlighting that the total of boxes 14 and 19 will represent the total income that is available to the applicant for supporting the applicant’s application to sponsor. This total would need to be at least equal to the amount of the minimum necessary income (see box 8) that the applicant needs to sponsor.
Question 11 – Your Situation Over the Last 12 Months
In the table given in question 11, the applicants would need to complete the sections A, B and / or C that apply to their situation during the 12 months prior to the date of their application. Applicants might come across situations where their situation changed during this period. In this scenario, they would need to enter the details of the most recent period in the Period I column. Thereafter, they would need to enter the details on the previous periods that make up the rest of the 12 months prior to their application in the next columns.
Similarly, applicants would need to give details about their employment in section B, including their personal employment income. They would need to do this for each of the employers:
- They worked for during the period of 12 months prior to the date of their application and,
- From which the applicant has received or will receive a T-4 slip
It is worth noting that personal employment income refers to the gross income that an applicant earns from their jobs as reported to the Canada Revenue Agency (CRA) from a T-4 slip.
In some cases, applicants could be self-employed. These individuals would need to provide all the details about their business in section C – including their personal business income. The authorities define personal business income as the net income earned (or loss incurred) and reported to the Canada Revenue Agency (CRA) from activities conducted for profit from a:
- Sole proprietorship
- Partnership or,
- Unincorporated business
As such, this would include a variety of trades, professions and businesses, such as small retail outlets and restaurants. Applicants would also need to include any income earned from other personal self-employment endeavours such as farming, fishing, commission sales, consulting and child care, which they typically conduct for profit.
Applicants would need to exercise care when they indicate clearly the reference period i.e. the first line at the beginning of each section they complete. For instance, if the date of their application was April 05, 2004, and they were self-employed during the 12 months prior to their application, they would need to complete section C in the Period I column, specifying on the first line of that section, the start i.e. April 06, 2003) and the end i.e. April 05, 2004, of the 12-month duration.
However, consider a situation where the applicant:
- Had been working for an employer for only six months (October 05, 2003)
- Was self-employed for the two months prior to being hired (August 05, 2003) and,
- Was unemployed prior to becoming self-employed
It is worth noting that the dates in parenthesis denote the dates the applicant would fill in the form, based on the dates given in the previous paragraph.
In this scenario, the applicant would need to first complete section B in the Period I column. This would indicate the applicant’s employment information. In addition, the applicant would need to specify the date the employer hired the applicant on the first line of that section, along with the date of the application i.e. April 05, 2004.
Thereafter, the applicant would need to complete section C in the Period II column. Here, the applicant would need to provide the relevant details about the applicant’s self-employment. On the first line of that section, the applicant would need to specify the date on which the applicant commenced activities i.e. August 05, 2003 and the date on which the applicant ended activities i.e. October 04, 2003.
Lastly, the applicant would need to complete section A in the Period III column. Here, the applicant would need to indicate the income the applicant earned from sources other than employment (if applicable). In the first line of this section, the applicant would need to specify the period during which the applicant was unemployed i.e. April 06, 2003 to August 05, 2003.
It is worth noting that income earned from other sources could typically include income earned from:
- Investments
- Rentals
- Pension income or,
- Special benefits payable under the Employment Insurance Act
The authorities have provided further details on this in questions 12 and 13, given subsequently in this document.
In case, applicants find that they require additional space, they have the liberty to provide their details on a separate sheet.
Question 12 – The Calculation of Income Based on the “Option – C Printout”
12.A: The applicants would need to print the amount that appears at line 150 of the last notice of assessment i.e. “Option – C Printout”, issued to them by the Canada Revenue Agency (CRA) for the most recent taxation year.
12.B: The applicants would need to enter all of the following payments that they included in the amount at line 150 of their notices of assessment, add them up and print the total:
- Provincial instruction or training allowance
- Social assistance paid by a province
- Employment insurance: The authorities only consider maternity, parental and sickness benefits paid under the Employment Insurance Act as income. As such, they do not consider other payments, such as employment insurance and federal training allowances as income and,
- Guaranteed income supplement paid under the Old Age Security Act
12.C: The applicants would need to deduct the total they entered at 12.B (i.e. line 6) from the amount they arrived at in 12.A (i.e. line 1). The result (12.C) denotes the applicant’s total income according to this method of calculation.
Question 13 – The Calculation of Income Based on the Preceding 12 Months
Applicants would only need to complete question 13 if:
- They cannot produce a notice of assessment i.e. “Option – C Printout”, for the most recent taxation year preceding the date of their application to sponsor or,
- They can produce a notice of assessment but the amount at line 150 is less than the minimum necessary income (as specified in the definition given earlier in this document) and,
- The applicants’ financial circumstances have improved since they received the notices of assessment
13.A: Personal Income from Employment, Business and Self-Employment
The applicants would need to add all their personal income earned from employment, business and other self-employment avenues in the 12 months prior to the date of their applications to sponsor, as instructed. Thereafter, they would need to enter the result on line 5 in section 13.A.
13.B: Other Income
The applicants would need to compute the income that they received from other sources. The authorities have defined these sources as given below:
- Net Rental Income: This refers to the net income earned (or loss incurred) and reported to the Canada Revenue Agency (CRA) from rental property
- Investment and Interest Income: This refers to the income reported to and accepted by the Canada Revenue Agency (CRA) from dividend payments, interest, stocks, bonds and other investments and, interest on savings deposits
- Pension Income: This refers to income from Old Age Security, Canada / Quebec Pension Plan, other pensions, superannuation and annuity payments from Canadian sources. Applicants would need to avoid including Guaranteed Income Supplement (GIS) payments.
- Maternity / Parental / Sickness Benefits: The authorities only consider maternity, parental and sickness benefits paid under the Employment Insurance Act as income. As such, they do not treat other payments such as employment insurance and federal training allowances as income.
- Other Sources of Income: Here, applicants would need to include income they have received and will continue to receive on a regular basis that they have not specified in the points given above such as spousal, child support etc. They would need to specify the source of the income on the form as well.
Applicants would need to note that they must not include the following sources of earnings:
- Provincial instruction and training allowances
- Social assistance
- Child tax benefits
- Guaranteed income supplement or,
- Employment insurance payments
Thereafter, applicants would need to add all the income received from other sources and enter the result on line 11 in section 13.B.
13.C: The applicants would need to add the totals they have entered at 13.A (i.e. line 5) and 13.B (i.e. line 11). The result i.e. 13.C denotes the applicant’s total income according to this method of calculation.
It is worth noting that the applicant’s available income i.e. box 14 is the greater of the two amounts they have entered in boxes 12.C and 13.C.
Income Available to Your Spouse or Common-Law Partner, if They are Co-signers
Applicants would need to complete questions 15 and 16 if their spouse or common-law partners are co-signing the sponsorship undertaking. So, applicants would need to print the required employer and / or, if self-employed, the relevant business or professional information.
The applicants would also need to complete the calculation based on:
- The “Option – C Printout” i.e. question 17 and / or,
- The preceding 12 months i.e. question 18
This would enable the applicants to determine the income their spouse or common-law partner earned. They would need to add this to their available income, if they require assistance to meet the prescribed financial requirement.
Question 16 – Your Co-signer’s Situation Over the Last 12 Months
Applicants would need to complete sections A, B and / or C, based on whichever sections apply to their co-signer’s situation during the 12 months prior to the date of their application. Situations could arise where the co-signer’s situation changed during that period. In this scenario, the applicants would need to enter information on the most recent period in the Period I column.
Thereafter, they would need to enter information on the previous periods that make up the rest of the 12 months preceding the applicant’s application in the next columns. Applicants could refer to the instructions prescribed for question 11 for completing question 16.
Situations could arise where during any period in the 12 months preceding their application, the applicant’s co-signer was unemployed. In this scenario, the applicants would need to enter the income the applicant’s co-signer received from sources other than employment in section A. This could include pension income or special benefits payable under the Employment Insurance Act.
In case, applicants find that they require additional space, they have the liberty to provide their details on a separate sheet.
Question 17 – The Calculation of Income Based on the “Option – C Printout”
17.A: The applicants would need to print the amount that appears at line 150 of the last notice of assessment i.e. “Option – C Printout”, issued to their spouse or common-law partner by the Canada Revenue Agency (CRA) for the most recent taxation year.
17.B: The applicants would need to enter all of the following payments that they included in the amount at line 150 of their spouse or common-law partners’ notices of assessment, add them up and print the total:
- Provincial instruction or training allowance
- Social assistance paid by a province
- Employment insurance: The authorities only consider maternity, parental and sickness benefits paid under the Employment Insurance Act as income. As such, they do not consider other payments, such as employment insurance and federal training allowances as income and,
- Guaranteed income supplement paid under the Old Age Security Act
17.C: The applicants would need to deduct the total they entered at 17.B (i.e. line 6) from the amount they arrived at in 17.A (i.e. line 1). The result (17.C) denotes the total income that the applicant’s spouse or common-law partner can contribute according to this method of calculation.
Question 18 – Calculation of Income Based on the Preceding 12 Months
Applicants would only need to complete question 13 if:
- Their co-signer cannot produce a notice of assessment i.e. “Option – C Printout”, for the most recent taxation year preceding the date of the applicant’s application to sponsor or,
- Their co-signer’s financial circumstances have improved since they received the notices of assessment
18.A: Personal Income from Employment, Business and Self-Employment
The applicants would need to add all the personal income their co-signer earned from employment, business and other self-employment avenues in the 12 months prior to the date of the applicant’s applications to sponsor, as instructed. Thereafter, they would need to enter the result on line 5 in section 18.A.
18.B: Other Income
The applicants would need to compute the income that their co-signers received from other sources. The authorities have defined these sources as given below:
- Net Rental Income: This refers to the net income earned (or loss incurred) and reported to the Canada Revenue Agency (CRA) from rental property
- Investment and Interest Income: This refers to the income reported to and accepted by the Canada Revenue Agency (CRA) from dividend payments, interest, stocks, bonds and other investments and, interest on savings deposits
- Pension Income: This refers to income from Old Age Security, Canada / Quebec Pension Plan, other pensions, superannuation and annuity payments from Canadian sources. Applicants would need to avoid including Guaranteed Income Supplement (GIS) payments.
- Maternity / Parental / Sickness Benefits: The authorities only consider maternity, parental and sickness benefits paid under the Employment Insurance Act as income. As such, they do not treat other payments such as employment insurance and federal training allowances as income.
- Other Sources of Income: Here, applicants would need to include income their co-signers have received and will continue to receive on a regular basis that they have not specified in the points given above such as spousal, child support etc. They would need to specify the source of the income on the form as well.
Applicants would need to note that they must not include the following sources of earnings:
- Provincial instruction and training allowances
- Social assistance
- Child tax benefits
- Guaranteed income supplement or,
- Employment insurance payments
Thereafter, applicants would need to add all the income received from other sources and enter the result on line 11 in section 18.B. Applicants would need to use the definitions specified in question 13.B if they require assistance while completing question 18.B.
The applicants would need to add the totals they have entered at 18.A (i.e. line 5) and 18.B (i.e. line 11). The result i.e. 18.C denotes the total income of the applicant’s spouse or common-law partner according to this method of calculation.
It is worth noting that the applicant’s spouse or common-law partner’s available income i.e. box 19 is the greater of the two amounts that the applicants have entered in boxes 17.C and 18.C.
Source: Citizenship and Immigration