Amended by Regulation 87/2001

Registered June 30, 2001

TABLE OF CONTENTS
Section

OBJECTIVES
1 Objective

INTERPRETATION
2 Definitions

AMOUNT OF CHILD SUPPORT
3 Presumptive rule

4 Incomes over $150,000

5 Person in place of a parent

6 Medical and dental Insurance

7 Special or extraordinary Expenses

8 Split custody

9 Shared custody

10 Undue hardship

ELEMENTS OF A CHILD SUPPORT ORDER
11 Form of payments

12 Security

13 information to be specified in order

VARIATION OF CHILD SUPPORT ORDERS
14 Circumstances for variation

INCOME
15 Determination of annual income

16 Calculation of annual income

17 Pattern of income

18 Imputing income

19 Non-resident

FINANCIAL INFORMATION
20 Obligation to provide financial information

21 Failure to comply

22 Failure to comply with court order

23 Unenforceable provision

24 Further application of sections 20 to 23

REVIEW AND COMING INTO FORCE
25 Review

26 Coming Into force

SCHEDULE I Child support tables
SCHEDULE II Comparison of household standards of living test
SCHEDULE lII Adjustments to Income

OBJECTIVES
Objectives
1 The objectives of these guidelines are

(a) to establish a fair standard of support for children that ensures that they benefit from the financial means of both parents;

(b) to reduce conflict and tension between parents by making the calculation of child support orders more objective;

(c) to improve the efficiency of the legal process by giving courts and parents guidance in setting the levels of child support orders and encouraging settlement: and

(d) to ensure consistent treatment of parents and children who are in similar circumstances.

INTERPRETATION
Definitions
2(1) In these guidelines,

“child" means a child of the marriage under the Divorce Act ( Canada ), or a child as defined by section 35.1 of The Family Maintenance Act, as the case may be;

"income" means the annual income determined under sections 15 to 19;

“order assignee” means a minister, member or agency referred to in subsection 20.1(1) of the Divorce Act (Canada) or the person under section 64 of The Family Maintenance Act to whom an order for the support of a child is assigned;

“parent” means a parent as defined in section 1 of The Family Maintenance Act;

“province” means a province of Canada , and includes the Yukon Territory and the Northwest Territories ;

“table” means a federal child support table set out In Schedule I of the Federal Child Support Guidelines, as adopted in Schedule I of these guidelines.

Income Tax Act
2(2) Words and expressions that are used in sections 15 to 20 and that are not defined in subsection (1) have the meanings assigned to them under the Income Tax Act ( Canada ).

Most current information
2(3) Where, for the purposes of these guidelines, any amount is determined on the basis of specified information, the most current information must be used.

Application of guidelines
2(4) In addition to child support orders, these guidelines apply, with such modifications as the circumstances require, to

(a) Interim orders under subsection 15.1(2) and 19(9) of the Divorce Act ( Canada ) and section 43 of The Family Maintenance Act;

(b) orders varying a child support order;

(c) orders referred to in subsection 19(7) of the Divorce Act ( Canada ); and

(d) recalculations under paragraph 25.1(1) (b) of the Divorce Act ( Canada ) and section 39.1 of The Family Maintenance Act.

AMOUNT OF CHILD SUPPORT
Presumptive rule
3(1) Unless otherwise provided under these guidelines, the amount of a child support order for children under the age of majority is

(a) the amount set out in the applicable table, according to the number of children under the age of majority to whom the order relates and the income of the parent against whom the order Is sought; and

(b) the amount. if any, determined under section 7.

Child the age of majority or over
3(2) Unless otherwise provided under these guidelines, where a child to whom a child support order relates is the age of majority or over, the amount of the child support order is

(a) the amount determined by applying these guidelines as if the child were under the age of majority; or

(b) if the court considers that approach to be inappropriate, the amount that It considers appropriate, having regard to the condition, means, needs and other circumstances of the child and the financial ability of each parent to contribute to the support of the child.

Applicable table
3(3) The applicable table is

(a) if the parent against whom an order Is sought resides In Canada,

the table for the province In which that parent ordinarily resides at the time the application for the child support order, or for a variation order In respect of a child support order, is made or the amount is to be recalculated under section 25.1 of the Divorce Act (Canada) or section 39.1 of The Family Maintenance Act,

where the court is satisfied that the province in which that parent ordinarily resides has changed since the time described In subclause (i), the table for the province in which the parent ordinarily resides at the time of determining the amount of support, or

where die court is satisfied that, in the near future after determining the amount of support, that parent will ordinarily reside in a different province from the province in which the parent ordinarily resides at the time of that determination, the table for the different province; and

(b) if the parent against whom an order Is sought resides outside of Canada, or if the residence of that parent Is unknown, the table for the province where the other parent ordinarily resides at the time the application for the child support order or for a variation order in respect of a child support order is made or the amount is to be recalculated under section 25.1 of the Divorce Act (Canada) or section 39.1 of The Family Maintenance Act.

Incomes over $150,000
4 Where the income of the parent against whom a child support order is sought is over $150,000, the amount of a child support order is

(a) the amount determined under section 3; or

(b) if the court considers that amount to be inappropriate,

(i) in respect of the first $150,000 of the parent's income, the amount set out in the applicable table for the number of children under the age of majority to whom the order relates,

(ii) in respect of the balance of the parent’s income, the amount that the court considers appropriate, having regard to the condition, means, needs and other circumstances of the children who are entitled to support and the financial ability of each parent to contribute to the support of the children, and

(iii) the amount, if any, determined under section 7.

Person in place of a parent
5 Where a person against whom a child support order is sought Is not the child’s parent but has been found by the court to have an obligation to pay for the support of the child either under the Divorce Act ( Canada ) as a person who stands in the place of a parent or under subsections 36(2). (3) or (4) of The Family Maintenance Act, the amount of a child support order is, in respect of that person, such amount as the court considers appropriate, having regard to these guidelines and the child’s parents’ legal duty to support the child.

Medical and dental insurance
6 In making a child support order, where medical or dental Insurance coverage for the child is available to either parent through his or her employer or otherwise at a reasonable rate, the court may order that coverage be acquired or continued.

Special or extraordinary expenses
7(1) In a child support order, on the request of the parent who has or is granted sole custody or primary care and control of the child, or a person, other than a parent, who seeks a child support order on behalf of a child, the court may provide for an amount to cover all or any portion of the following expenses, which expenses may be estimated, taking into account the necessity of the expense in relation to the child’s best interests and the reasonableness of the expense in relation to the means of the parents and those of the child and. where the parents cohabited after the birth of the child, to the family’s spending pattern prior to the separation:

(a) child care expenses incurred as a result of the custodial parent's employment, illness, disability or education or training for employment;

(b) health-related expenses, or any portion of health related expenses not covered by insurance that exceed $1OO annually including orthodontic treatment, professional counselling provided by psychologist, social worker, psychiatrist or any other person, physiotherapy, occupational therapy, speech therapy and prescription drugs, hearing aids, glasses and contact lenses;

(c) extraordinary expenses for primary or secondary school education or for any other educational programs that meet the child's particular needs;

(d) expenses for post-secondary education; and

(e) extraordinary expenses for extracurricular activities.
Extraordinary expenses
7(1.1) In clauses 1(c) and (e), "extraordinary expenses" means

(a) expenses that exceed those that the parent requesting an amount for the extraordinary expenses can reasonably cover, taking into account that parent's income and the amount that the parent would receive under the applicable table or, where the court has determined that the table amount is inappropriate, the amount that the court has otherwise determined is appropriate; or

(b) where clause (a) is not applicable, expenses that the court considers are extraordinary taking into account

(i) the amount of the expense in relation to the income of the parent requesting the amount, including the amount that the parent would receive under the applicable table or, where the court has determined that the table amount is inappropriate, the amount that the court has otherwise determined is appropriate,

(ii) the nature and number of the educational programs and extracurricular activities,

(iii) any special needs and talents of the child or children,

(iv) the overall cost of the programs and activities, and

(v) any other similar factor the court considers relevant.

Sharing of expense
7(2) The guiding principle in determining the amount of an expense referred to In subsection (1) is that the expense Is shared by the parents in proportion to their respective incomes above the threshold level of income below which no amount of child support is payable in the table for the province in which the parent ordinarily resides, after deducting from the expense, the contribution, if any from the child.

Subsidies, tax deductions, etc.
7(3) In determining the amount of an expense referred to in subsection (1), the court must take into account any subsidies, benefits or income tax deductions or credits relating to the expense and any eligibility to claim a subsidy, benefit or income tax deduction or credit relating to the expense.

Health-related expenses
7(4) In determining an amount under clause 7(I)(b) the court may take into account any amount either parent must pay for medical or dental Insurance coverage for the child.

Split custody
8 Where each parent has sole custody or primary care arid control of one or more children, the amount of a child support order is the difference between the amount that each parent would otherwise pay if a child support order were sought against each of the parents.

Shared custody
9 Where each parent exercises a right access to, or has physical custody or care and control of a child for not less than 40 per cent of the time over the course of a year, the amount of the child support order must be determined by taking into account

(a) the amounts set out in the applicable tables for each of the parents;

(b) the increased costs of shared custody arrangements; and

(c) the condition, means, needs and other circumstances of each parent and of any child for whom support is sought.

Undue hardship
10(1) On the application of either parent or a person on behalf of a child, a court may award an amount of child support that is different from the amount determined under any of sections 3 to 5, 8 or 9, if the court finds that the parent making the request, or a child in respect of whom the request is made, would otherwise suffer undue hardship.

Circumstances that may cause undue hardship
10(2) Circumstances that may cause a parent or child to suffer undue hardship include the following:

(a) the parent has responsibility for an unusually high level of debts reasonably incurred to support the parents and their children prior to the separation or to earn a living;

(b) the parent has unusually high expenses in relation to exercising access to a child;

(c) the parent has a legal duty under a judgment, order or written separation agreement to support any person;

(d) the parent has a legal duty to support a child, other than a child of the parents or a child of the other parent who Is a party to the application who Is

(i) under the age of majority, or

the age of majority or over but is unable, by reason of illness, disability or other cause, to obtain the necessaries of life; and

(e) the parent has a legal duty to support any person who Is unable to obtain the necessaries of life due to an illness or disability.

Standards of living must be considered
10(3) Despite a determination of undue hardship under subsection (1), an application under that subsection must be denied by the court if it is of the opinion that the household of the parent who claims undue hardship would, after determining the amount of child support under any of sections 3 to 5, 8 or 9, have a higher standard of living than the household of the other parent.

Standards of living test
10(4) In comparing standards of living for the purpose of subsection (3), the court may use the comparison of household standards of living test set out in Schedule II.

Reasonable time
10(5) Where the court awards a different amount of child support under subsection (1), it may specify, in the child support order, a reasonable time for the satisfaction of any obligation arising from circumstances that cause undue hardship and the amount payable at the end of that time.

Reasons
10(6) Where the court makes a child support order In a different amount under this section, it must record Its reasons for doing so.

ELEMENTS OF A CHILD SUPPORT ORDER
Form of payments
11 The count may require in a child support order that the amount payable under the order be paid in periodic payments, in a lump sum or in a lump sum and periodic payments.

Security
12 The court may require in the child support order that the amount payable under the order be paid or secured, or paid arid secured, In the manner specified in the order.

Information to be specified In order
13 A child support order must include the following information:

(a) the name and birth date of each child to whom the order relates;

(b) the income of any parent whose income is used to determine the amount of the child support order;

(c) the amount determined under clause 3(1)(a) for the number of children to whom the order relates;

(d) the amount determined under clause 3(2)(b) for a child the age of majority or over;

(e) the amount or amounts determined under subsection 7(1), the clause of subsection 7(1) to which each amount relates and the child or children to whom the expense relates; and

(f) the date on which the lump sum or first payment is payable and the day of the month or other time period on which all subsequent payments are to be made.

VARIATION OF CHILD SUPPORT ORDERS
Circumstances for variation
14 For the purpose of subsection 17(41 of the Divorce Act, and section 37.2(31 of The Family Maintenance Act, any one of the following constitutes a change in circumstances that gives rise to the making of a variation order in respect of a child support order:

(a) in the case where the amount of child support includes a determination made in accordance with the applicable table, any change in circumstances that would result In a different child support order or any provision thereof;

(b) in the case where the amount of child support does not include a tie determination made in accordance with a table, any change in the condition. Means, needs or other circumstances of either parent or of any child who is entitled to support;

(c) in the case of an order under the Divorce Act ( Canada ) made before May 1, 1997 , the coming into force of section 15.1 of the Divorce Act. enacted by section 2 of chapter I of the Statutes of Canada, (1997):

(d) in the case of an order under The Family Maintenance Act made before June 1, 1998 , the coming into force of section 37 of The Family Maintenance Act, enacted by section 6 of chapter 56 the Statutes of Manitoba (1997).

INCOME
Determination of annual Income
15(1) Subject to subsection (2). a parent's annual income Is determined by the court in accordance with sections 16 to 19. having regard to the financial information flied with the court under section 20.

Agreement
15(2) Where both parents agree in writing on the annual income of a parent, the court may consider that amount to be the parent’s income for the purposes of these guidelines if the court thinks that the amount is reasonable having regard to the parent's financial information filed with the court pursuant to section 20.

Calculation of annual income
16 A parent’s annual income is determined pursuant to sections 17 to 19 using the same sources of income set out under the heading "Total Income" in the TI General form issued by the Canada Customs and Revenue Agency, adjusted in accordance with Schedule III.

Pattern of Income
17 The amount of income from a source of income under section 16 Is the amount of Income from that source Unless the court is satisfied that the parent will likely receive in the current year, and in determining that annual amount, where the court is of the opinion that the parent’s current income from a source would not provide the fairest determination of the parent's annual income from that source. the court have regard to the parent's income from that source over the last three years and determine an amount that is fair and reasonable In light of any pattern of income or fluctuations in income over the previous three years.

Imputing income
18(1) The court may impute such amount of income to a parent as it considers appropriate in the circumstances, which circumstances include the following:

(a) the parent is intentionally under-employed or unemployed. other than where the under-employment or unemployment is required by the needs of a child or by the reasonable educational or health needs of the parent;

(b) the parent is exempt from paying federal or provincial income tax;

(c) the parent lives In a country that has effective rates of income tax that are significantly lower than those in Canada ;

(d) it appears that Income has been diverted which would affect the level of child support to be determined under these guidelines;

(e) the parent’s property is not reasonably utilized to generate income;

(f) the parent has failed to provide income Information when under a legal obligation to do so;

(g) the parent unreasonably deducts expenses from income;

(h) the parent derives a significant portion of income from dividends, capital gains or other sources that are taxed at a lower rate than employment or business income or that are exempt from tax;

(i) the parent Is a beneficiary under a trust and is or will be in receipt of income or other benefits from the trust.

Reasonableness of expenses
18(2) For the purpose of clause (1)(g), the reasonableness of an expense deduction is not solely governed by whether the deduction Is permitted under the Income Tax Act ( Canada ).

Shareholder, director or officer
18(3) Where a parent Is a shareholder, director or officer of a corporation and the court is of the opinion that the amount of the parent’s annual income for taxation purposes does not fairly reflect all the money available to the parent for the payment of child support, the court may determine the parent's annual income to include

(a) all or part of the pre-tax income of the corporation, and of any corporation that is related to that corporation, for the most recent taxation year, or

(b) an amount commensurate with the services that the parent provides to the corporation, provided that the amount does not exceed the corporation's pre-tax income;

Adjustment to corporation’s pre-tax Income
18(4) In determining the pre-tax income of a corporation for the purposes of subsection (3). all amounts paid by the corporation as salaries, wages or management fees, or other payments or benefits, to or on behalf of persons with whom the corporation does not deal at arm’s length must be added to the pre-tax income, unless the parent establishes that the payments were reasonable in the circumstances.

Non-resident
19 Where a parent is a non-resident of Canada , the parent’s annual income is determined as though the parent were a resident of Canada .

FINANCIAL INFORMATION
Obligation to provide financial information to the court
20(1) A parent who is a party to an application for a child support order or a variation order and whose income Information is necessary to determine an amount of child support must file with the court at the same time as the parent files his or her application, answer, or reply, as the case may be, the following information:

(a) a copy of a sworn Financial Statement in the form required by the Court of Queen’s Bench;

(b) copies of The Canada Customs and Revenue Agency income and deduction computer printouts showing the parent's income as assessed by The Canada Customs and Revenue Agency for each of the three most recent taxation years in which the parent filed a tax return.

Obligation to provide financial Information to the other parent
20(2) A parent whose income information is necessary to determine an amount of child support must provide the following to the other parent, or his or her authorized representative or an order assignee, after receiving a written request from the other parent, or his or her authorized representative or the order assignee,

(a) a sworn Financial Statement in the Form required by the Court of Queen's Bench;

(b) a copy of every personal income tax return filed by the parent for each of the three most recent taxation years;

(c) a copy of every notice of assessment or re-assessment issued to the parent for each of the three most recent taxation years;

(d) where the parent is an employee, the most recent statement of earnings Indicating the total earnings paid in the year to date, including overtime or, where such a statement is not provided by the employer, a letter from the parent’s employer setting out that information including the parent’s rate of annual salary or remuneration;

(e) where the parent is self-employed, for the three most recent taxation years

(i) the financial statements of the parent’s business or professional practice, other than a partnership, and

(ii) a statement showing a breakdown of all salaries, wages, management fees or other payments or benefits paid to, or on behalf of, persons or corporations with whom the parent does not deal at arm’s length;

(f) where the parent is a partner in a partnership, confirmation of the parent’s income and draw from, and capital in, the partnership for its three most recent taxation years:

(g) where the parent controls a corporation, for its three most recent taxation years

(i) the financial statements of the corporation and its subsidiaries,

(ii) a statement showing a breakdown of all salaries, wages, management fees or other payments or benefits paid to, or on behalf of, persons or corporations with whom the corporation, and every related corporation, does not deal at arm's length;

(h) where the parent is a beneficiary under a trust, a copy of the trust settlement agreement and copies of the trust’s three most recent financial statements;

(h.1) in addition to any income information that must be included under clauses (d) to (h), where the parent receives income from employment insurance, social assistance, a pension, workers' compensation, disability payments or any other source, the most recent statement of income indicating the total amount of income from the applicable source during the current year, or if such a statement is not provided, a letter from the appropriate authority stating the required information

(i) where a child support order or variation order is in effect which includes an order for special expenses under subsection 7(1), any current information, in writing, about the status of any expenses included in the order pursuant to subsection 7(1);

(j) where a child support order or variation order is In effect which was made by the court on a determination of undue hardship under section 10, any current information in writing, about the circumstances relied on by the court in the determination of undue hardship.

Time for providing financial information
20(3) The financial information to be provided under subsection (2) shall be provided

(a) within 30 days alter receipt of the request if the parent resides in Canada ; and

(b) within 60 days after receipt of the request if the parent resides outside Canada .

Deemed receipt
20(4) A request made under subsection (2) is deemed to have been received on the actual day it is received or 10 days after it is sent, whichever is the earlier.

Limitations on requests for financial Information
20(5) A parent may request financial information from the other parent pursuant to subsection (2) not more than once a year after a child support order or variation order has been made, unless an application for a child support order or a variation order has been filed with the court and is pending.

Documents previously provided
20(6) A parent is not obliged to provide any documents the parent has previously provided in response to a request by the other parent under this section, unless a court orders otherwise.

Court may require more financial information
20(7) Where the court is of the opinion that the financial information filed by the parents is insufficient, the court may order a parent to file and serve the income information required under subsection (2) and any other financial information that the court deems relevant.

Obligation to provide current financial information at hearing
20(8) Nothing in these guidelines shall be construed as limiting the obligation of a parent whose financial information Is necessary to determine the amount of the order to provide all relevant current financial information to the other parent and the court at the time of the hearing of the application.

Failure to comply
21 Where a parent falls to comply with section 20, the other parent may apply to the court without notice for an order requiring the parent to provide the required documents and any other financial information that the court deems relevant within a specified time.

Failure to comply with court order
22 Where a parent falls to comply with an order under section 20(7) or 21, the court may do one or more of the following:

(a) make a contempt order against the parent;

(b) award costs in favour of the other parent up to an amount that fully compensates the other parent for all costs incurred in the proceedings;

(c) where on application for a child support order or a variation order has been made and is pending,

(i) dismiss the parent’s action or strike out the parent's pleadings,

(ii) proceed to a hearing, in the course of which it may draw an adverse inference against the parent and impute income to that parent in such amount as it considers appropriate.

Unenforceable provision
23 A provision In a judgment, order or agreement purporting to limit a parent’s obligation to provide financial information under section 36.1 of The Family Maintenance Act or section 20 of these guidelines is unenforceable.

Further application of sections 20 to 23
24. Sections 20, 21, 22 and 23 of these guidelines also apply to a person who Is not the parent of a child but has been found by the court to have an obligation to pay for the support of the child either

(a) under the Divorce Act ( Canada ) as a person who stands in the place of a parent; or

(b) under subsections 36(2), (3) or (4) of The Family Maintenance Act.

REVIEW AND COMING INTO FORCE
Review
25 Not later than May 31, 2005 , Minister of Justice shall

(a) review the operation of this regulation including consulting with such persons affected by it as the minister considers appropriate; and

(b) recommend to the Lieutenant Governor in Council that the regulation be amended, continued or repealed.

Coming into force: Family Maintenance Act
26(1) These guidelines as they relate to applications under The Family Maintenance Act come into force on the day The Family Maintenance Amendment Act, SM. 1997, c. 56 comes into force,

Coming into force: Divorce Act
26(2) These guidelines as they relate to applications under the Divorce Act (Canada) come into force on the day Manitoba is designated by the Governor in Council for the purposes of [he definition “applicable guidelines" within the meaning of subsection 2(5) of that Act.

SCHEDULE I
(Subsection 2(1))
CHILD SUPPORT TABLES
1 Schedule I of the Federal Child Support Guidelines established pursuant to section 26.1 of the Divorce Act ( Canada ). as amended from time to time, is adopted for the purposes of these guidelines.

2 In applying Schedule I of the Federal 2 Child Support Guidelines, a reference to “spouse" should be read as a reference to "parent” as defined in section 1 of The Family Maintenance Act.

SCHEDULE II
(Subsection 10(4))
COMPARISON OF HOUSEHOLD STANDARDS OF LIVING TEST
1 Schedule II of the Federal Child Support Guidelines established pursuant to section 26.1 of the Divorce Act ( Canada ). as amended from time to time, is adopted for the purposes of these guidelines.

2 In applying Schedule II of the Federal Child Support Guidelines, a reference to “spouse” shall be read as a reference to “parent” as defined in section 1 of The Family Maintenance Act

.

SCHEDULE III
(Section 16)
ADJUSTMENTS TO INCOME
1 Schedule III of the Federal Child Support Guidelines established pursuant to section 26.1 of the Divorce Act Canada), as amended from time to time, is adopted for the purposes of these guidelines.

2 In applying Schedule III of the Federal Child Support Guidelines, a reference to “spouse” Is to be read as a reference to “parent” as defined in section 1 of The Family Maintenance Act.

FEDERAL CHILD SUPPORT GUIDELINES

SCHEDULEIII

(Section 16)

ADJUSTMENTS TO INCOME

Employment expenses

1. Where the spouse is an employee, the spouse's applicable employment expenses described in the following provisions of the Income Tax Act are deducted:

(a) paragraph 8(l)(c) concerning expenses of clergyman's residence;

(b) paragraph 8(l)(d) concerning expenses of teacher's exchange fund contribution;

(c) paragraph 8(l)(e) concerning expenses of railway employees;

(d) paragraph 8(l)(/) concerning sales expenses;

(e) paragraph 8(l)(g) concerning transport employee's expenses;

(fi paragraph 8(l)(h) concerning travel expenses;

(g) paragraph 8(l)(i) concerning dues and other expenses of performing duties;

(h) paragraph 8(1)0) concerning motor vehicle and aircraft costs;

(I) paragraph 8 (1) 0. 1) concerning Canada Pension Plan contributions and Employment Insurance Act remiums paid in respect of another employee who acts as an assistant or substitute for the spouse;

paragraph 8(l)(n) concerning salary reimbursement; (k) paragraph 8(l)(o) concerning forfeited amounts; (@ paragraph 8(l)(p) concerning musical instrument costs; and (m) paragraph 8(l)(q) concerning artists'employment expenses.

Child support

2. Deduct any child support received that is included to determine total income in the T I General form issued by Revenue Canada .

Spousal support

3. (1) To calculate income for the purpose of determining an amount under an applicable table, deduct the spousal support received from the other spouse.

Special or extraordinary expenses

(2) To calculate income for the purpose of determining an amount under section 7 of these Guidelines, deduct the spousal support paid to the other spouse.

Social assistance

4. Adjust social assistance income to include the amount determined to be attributable to the spouse.

Dividends from taxable Canadian corporations

5. Replace the taxable amount of dividends from taxable Canadian corporations received by the spouse by the actual amount of those dividends received by the spouse.

Capital gains and capital losses

6. Replace the taxable capital gains realized in a year by the spouse by the actual amount of capital gains realized by the spouse in excess of the spouse's actual capital losses in that year.

Business investment losses

7. Deduct the actual amount of business investment losses suffered by the spouse during the year.

Carrying charges

8. Deduct the spouse's carrying charges and interest expenses that are paid by the spouse and that would be deductible under the Income Tax Act.

Net self-employment income

9. Vvlhere the spouse's net self-employment income is determined by deducting an amount for salaries, benefits, wages or management fees, or other payments, paid to or on behalf of persons with whom the spouse does not deal at arm's length, include that amount, unless the spouse establishes that the payments were necessary to earn the self-employment income and were reasonable in the circumstances.

Additional amount

10. Where the spouse reports income from self-employment that includes the selfemployment income for the 12 months ending on December 31 of the reporting year plus an additional amount earned in a prior period, deduct the amount earned in the prior period, net of reserves.

Capital cost allowance for property

11. Include the spouse's deduction for an allowable capital cost allowance with respect to real property.

Partnership or sole proprietorship income

12. Where the spouse earns income through a partnership or sole proprietorship, deduct any amount included in income that is properly required by the partnership or sole proprietorship for purposes of capitalization.

Employee stock options with a Canadian-controlled private corporation

13. (1) Where the spouse has received, as an employee benefit, options to purchase shares of a Canadian-controlled private corporation and has exercised those options during the year, add the difference between the value of the shares at the time the options are exercised and the amount paid by the spouse for the shares and any amount paid to acquire the options to purchase the shares, to the income for the year in which the options are exercised.

Disposal of shares

(2) If the spouse has disposed of the shares during the year referred to in subsection (1), deduct from the income for that year the difference determined pursuant to that subsection.