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Debra
Debra, Lawyer
Category: Canada Law
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OK. Looking for if there is anything to pursue on this. She

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OK. Looking for if there is anything to pursue on this. She now states that she owns the business. It happens to be a remarkably similar name to the one she was a contract employee for. I have found no indication of a registered business and she has not said when the new "company" was started, but it was no later than Jan 1, 2016. Her Income Statement on ITR only shows her name, not a business name. Is this a material change in circumstances? Is there anything that can reasonably be pursued?
Customer: replied 7 days ago.
Oh yes. And it's evident that she has understated income and quite likely over stated expenses. Although neither of these would be enough to reach her imputed employment income.
Customer: replied 7 days ago.
she did not disclose ownership until I enquired. At least 18 months after the business was started.

Hello! My name is Debra (formerly known as Legal Ease). Thank you for your question. I'm reviewing it now, and will post back again shortly.

It could be said to be a material change of circumstance.

How did she get this business? Did she buy it? With what funds?

What is her true income now?\

This is what you are entitled to know and do need this information.

Customer: replied 7 days ago.
She claims to have started her own business and that she brought 2 accounts and consultants with her from the other company. I presume the other company ceased operations. This was a backroom deal they had talked about where she would "take over" the business in lieu of moneys owed that could not be proven. Her true income is still masked in obscurity. For example, now $60k plus income, plus HST but net loss of $2k. Although she admits she took $16K in "salary" from the business.

Or maybe she got the business by working and not being paid to keep her income down?

Customer: replied 7 days ago.
That's quite plausible. But I can't prove it

It is something to look into.

Customer: replied 7 days ago.
I don't know how. It would have been in full collusion with the former employer. He's been fined a number of times for failure to pay wsib and cpp/ei for staff in a separate business. It's also the reason why she was on contract. To avoid those costs

She can be compelled to make full disclosure.

She cannot suddenly own a business and not have to explain it if she has been reporting virtually no income.

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