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While much has been talked about in terms of LICO (Low Income Cutoff) for family sponsorship, less has been said about the actual accounting and proof for meeting LICO for family sponsorship.
This post is not about the amounts as they will change yearly but rather, I aim to talk about the actual accounting method and proof you will need to make an application a success.
The biggest mistake immigrants make when starting the application process for any type of family sponsorship is thinking that it begins with the application paper you will need to fill out.
This is entirely incorrect; the application process begins on the first day of your new job.
This is because the absolute best proof of you meeting LICO is not the amount of money in your bank account (although that is still important), it is the amount of taxes that are remitted on your behalf by the company you work for.
Your yearly taxes and remittances to the CRA is the best proof you have of meeting LICO.
The trap many new immigrants fall into is working for an employer that does not remit taxes or the full amount of taxes on your behalf (always check your payslip for the amounts remitted and your pay) or under-reporting your earnings to keep more of the money.
Both are traps that a lot of new immigrants fall under. By not providing your CRA Notice of Assessments (NoA) and tax remittances, it is almost impossible to prove your earnings. As such, there is a large chance your application will be refused. If you try to make it up by declaring your income higher and back paying the CRA, the CRA will now know you have been withholding taxes and will penalize you as well as flag your tax account for future audits.
Honesty is the best policy so if you plan on sponsoring a family (spouse, children, parents), please make sure to pay your taxes (and that your employer is paying your taxes properly). It might be a good idea to retain an accountant that specializes in immigration for your first year employed in Canada to make sure that all your information has been correctly reported.
The blog post was written by Jesse Chung.
#JourneyTo Canada
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