The appellant husband appealed a trial decision that imputed his income for child support purposes after he abandoned his successful independent electrical contracting business for a lower-paying salaried position.
The trial judge found him intentionally underemployed under s. 19(1) of the Federal Child Support Guidelines, averaged his previous three years of corporate income, and grossed it up to account for the lower corporate tax rate he paid compared to a salaried employee.
The Court of Appeal dismissed the appeal, upholding the finding of intentional underemployment and the gross-up of corporate income to ensure consistent treatment of spouses under the Guidelines.
The respondent wife's cross-appeal for increased spousal support was also dismissed.
