Proof of Income for self-employed individual with incorporated business

[hbw]

Hello,

I have a question regarding Proof of income for an incorporated business owner.

#18 of the Document checklist outlines guidelines for employed and self employed individuals with an unincorporated business.

I have an incorporated business. I was just wondering what is expected of me for proof of income.

I was thinking

1. Article of incorporation to show that I am the sole owner of the business
2. Bank statements from the past 12 months to show that there is income.

Does anyone have any experience in this situation or advice?

I would greatly appreciate any insight.

Thanks.

 

[toby]

If you're in Canada, the income your unincorporated business received had to be declared in your personal tax return, and the Notice of Assessment you received from CRA would be the proof you need.

If you're outside Canada, did you file a tax return? Probably a similar document was provided by that country.

 

[hbw]

My business is incorporated and so the income does not show up on my tax return.

I have separate tax return for my business. However, the latest one is from last year and it seems like for proof of income they want to see stuff from the preceding 12 months of the application.

I am inside of Canada.

 

[rjessome]

If you draw dividends, you would have gotten something similar to a T4 (it's not that but I can't remember what it's called). That's what I used as proof.

 

[hbw]

Unfortunately, I do not draw dividends. =(

 

[rjessome]

Then how are you paid? If you don't draw dividends, do you draw a salary? If that's the case you should receive a T4. Look, it doesn't necessarily mean from the past 12 months immediately preceeding the application. I applied to sponsor my husband in Oct 08, gave them my dividends statement from the previous year as well as the Option C printout. If I remember correctly, I also wrote a letter advising that I am a director of the company and how much money I draw on average per month. You could do that as well as a director. If you are sponsoring a spouse, you are financially exempt anyway.

 

[hbw]

My concern is primarily the finances 12 months prior to the application, which to me, seems to be the focus of that particular requirement.

Thank you for your input and telling me what worked for you. I will also include a letter as director of the corporation.

 

[toby]

Seems to me you did not get a final answer, after you clarified a few important details.

So, your corporation is a Canadian corporation. You did not draw dividends, and you don't say whether you took a salary or not. In this case, another member asked a very good question: "what is your personal income?"

If you leave all the busniness income inside your corporation, then what other sources of income do you have -- income which is supposed to be reported in your personal tax return? If you don't have any other sources of income, then you report zero income on your personal return, show that Notice of Assessment to Immigration, and in their eyes you are a pauper.

I don't think a letter from you, on your own behalf, stating income is going to count for much.

If you took a lot of income from the corporation two years ago, and lived off the cash the past year, then explain that and attach the Notice of Assessment from two years ago.

Does that clear it up?