Entrepreneurs & Self-Employed :Guidelines for Reviewing Other Documentation

Last Updated on August 29, 2016

The Guidelines for Reviewing Other Documentation

Officers would also need to review other supporting documentation as necessary. Such documentation would typically include:

• Corporate income tax returns
  • Officers might need to examine tax returns including information pertaining to:
    • The owners and directors
    • Any related parties
    • The profit for income tax purposes and,
    • The duration of operations
• Personal income tax returns
  • Officers might typically wish to review:
    • The proprietor’s profit and loss and,
    • Any supporting financial statements
• Minute books
  • Officers might also need to review:
    • The shareholders’ register
    • The shareholders’ resolutions
    • The minutes of meetings and,
    • The articles of incorporation
• Share certificates
  • Officers would need to review the share certificates to ascertain the indication of ownership
• Municipal permits, business licences etc.
  • Officers might need to review the municipal permits, business licences and other similar documentation
  • This enables officers to understand the type of business organisation
  • In many cases, business undertakings usually exist as proprietorships, partnerships or corporations i.e. legal entities organised for specific purposes with a limited liability
  • As a general rule, many small businesses start off as proprietorships or partnerships, before evolving into corporations as the level of business activities expands
  • Business owners would need to register or license their businesses
  • The business registration certificate typically specifies the name of the individual in whose name the business has been registered
  • Officers would need to note that the business registration certificate might not indicate who owns or operates the business
  • However, the business registration certificate would usually carry the business address
  • In addition, it would indicate whether the business is a sole proprietorship, a partnership or a corporation
• Payroll records
  • With rare exceptions, officers find payroll records essential for determining the eligibility of this category of applicants
• Sales taxes, property deeds, land registrations, appraisals etc.
  • When reviewing these documents, the officers might:
    • Request for a one-year record of bank deposits to verify their long-term ownership and,
    • Request property deeds or bank letters for verifying the ownership of property or stocks, amounts of outstanding mortgages and banking facilities used
    • It is worth mentioning that property appraisals are an additional expense for the applicant
      • As such, officers would need to request for these only if the property value given by the applicant is questionable and this assessment is critical to the total net worth of the applicant
• The general ledger, cash book or bank statements
  • Officers might request supporting accounting records in certain circumstances

Note:

• Officers would need to note that the likelihood exists that the net income according to the financial statements and the taxable income according to the tax return differs
• This is usually the case because of the different methods of treatment applied to certain items such as depreciation
• However, the officers would need to examine the reconciliation to explain this difference
• Officers would need to feel concerned if they come across instances where the applicant has presented two sets of different information for the purposes of financial statements and tax reporting i.e. presenting two sets of books
• Similarly, an applicant’s inability to produce tax records is a cause for concern
• In addition, a pattern of insufficient profit for at least covering the cost of living of the applicant and the applicant’s dependents also remains a cause for concern for the officers
• Officers also have the authority for requesting the applicant to provide all relevant evidence and documents that they reasonably require for assisting them in making a selection decision
  • This is in accordance with the provisions specified in A16 (1)

The Refusal of an Entrepreneur Application

Officers would need to refuse an applicant for failing to meet the entrepreneur definition. This is in accordance with the provisions specified in R88. Officers would typically refuse applicants because:

• The applicant lacks the business experience because of the two-year qualifying standard
• The business does not meet the definition of a qualifying business
• The applicant does not meet the legally obtained minimum net worth standard and,
• The applicant refuses to provide a written statement that states that they intend to and have the ability to meet the conditions referred to in subsection R98 (1) to R98 (5)

It is worth mentioning that officers would need to refuse any applicant described in any of the inadmissibility sections.

Note:

• Officers will assess a person who applies as a business immigrant in that class and accept or refuse the applicant based on that assessment
• As such, the officers do not need to assess a failed business applicant as a skilled worker nor in another business class

The Refusal Letter

Officers would need to ensure that the refusal letter clearly states all the reasons for refusal in detail. In some cases, it is possible that the applicant might present information later that the applicant should ideally have disclosed at the time of the interview. Had the applicant done this at the time, it might have led to a positive decision. In cases like this, the officers would need to invite the applicant to submit a new application – especially in the absence of any special circumstances. However, the applicant would need to pay a new cost recovery fee.

Making the Admissibility Decision

The visa office will typically proceed to issuing the visa if the applicant:

• Meets all the selection criteria and,
• Is not otherwise inadmissible