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I am a resident of Ontario and I am planning to go to University in September. Upon applying for OSAP I was asked what my monthly salary while in school will be (excluding time away from school). I own a corporation (xxxxxx, Inc.)

Lets say my company was making $1000 a month (fake number of course) and I only payed myself $100 of this each month while in school and kept the rest of the money in the business account. Would I write that I am making $1000 or $100 monthly on the OSAP application? My thoughts are that I would put that I am earning $100 each month as my company is making $1000 a month, not me -- I am only making $100 a month.

TLDR; Are the CEO's earnings different from the Company's earnings if the CEO is the only shareholder?

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    It possibly depends on exactly what type of company it is (more how it is registered; not so much what it does). For example, in the US (going by other answers I've seen on here), for certain types of "one person companies" the company's income and the owner's income are treated as one and the same. – TripeHound Jun 12 '18 at 7:59
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    How are you filing the taxes? Is there a separate tax return for the corporation? – quid Jun 12 '18 at 8:29
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    @quid Yes, there is a separate tax return for the corporation. It also might be worth noting that I registered the corporation provincially. I am thinking my best option might be calling the schools financial aid today -- this is a bit of an odd situation. – Swift Geek Jun 12 '18 at 10:40
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Individuals and Registered Limited Companies are separate entities in law, and that is their purpose. You cannot claim the income of a company.

Your personal income is $100 p/m. However, since you are the sole equity holder you can claim that your net worth is increasing every month since the value of your equity is increasing in lieu of the company's retained earnings.

How you choose to present this on an application is, in my opinion is subjective. What is the information they want and fill in the form to most accurately assess your opinion of that requirement.

  • I expect what they're asking for is his income from all sources to determine his eligibility for financial aid. Hiding $900/mo in a company that the OP completely controls, and can draw from at will, looks like income to me. – Rupert Morrish Jun 12 '18 at 21:16
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    Thanks for the reply. I spoke to financial aid today and they told me to contact my accountant about this -- so I will tomorrow. Essentially, they told me that I have to claim any "personal income" and my accountant can confirm if this is personal income or not. I asked what they define as "personal income" and they told me anything that shows on my personal taxes. The corporation and I have separate taxes so I believe I will only have to claim $100 p/m. I will post back what happens regarding this incase anyone has a similar situation in the future. – Swift Geek Jun 12 '18 at 23:05
  • I applaud your thoroughness and ethics. Personally I wouldn't invest the time. As highlighted there is a difference between the 'legal' response and the 'spirit of the question' response. I would answer with the response that most favourably reflects my desired outcome and that which I can support with fair argument. Since the question makers can't even define what you should do in your situation is a strong argument to suggest it is open to interpretation - which many questions in the world are, we just like it when things are black and white. – Attack68 Jun 13 '18 at 4:49
  • @Attack68 Thank you for your advice -- that is what I ended up doing. Although, I did email them today explaining what I did and why I did it to simply avoid any repercussions in the future (at least I will have proof that they gave me the go-ahead). Definitely a huge loop hole on their part. I will mark your answer as correct. Thanks again! – Swift Geek Jun 14 '18 at 4:24

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