Accumulation of Net Worth

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Accumulation of Net Worth by Legitimate Sources of Income
In order to meet MPNP-B requirements, your declared net worth must have been legally obtained. You must demonstrate, through documentation, how your net worth was obtained. This is a very important requirement of the MPNP-B and you must present sufficient and credible documents to prove that the income and net worth were “obtained through lawful means.”

The MPNP-B will assess your accumulated net worth based on the information supplied in form Schedule 4A: Economic Classes – Provincial Nominees – Business Nominees and the supporting documentation provided by you. You must disclose all assets and liabilities owned by you, your spouse and your dependent children in this form, with the exception of personal effects such as jewellery, antiques, paintings, carpets, furniture and automobiles.

Your personal net worth includes all assets, less any liabilities including mortgages and personal debts. Your net worth may include the following assets:

  • cash
  • assets in bank accounts
  • fixed (term) deposits
  • real property
  • investments in bonds, stocks and mutual funds
  • investments in one or more businesses
  • pensions and other assets.

Section J of Schedule 4A – Economic Classes – Provincial Nominee – Business Nominees Form: Section J of this form advises an applicant to submit a narrative document. This narrative document should describe all income earning activities and events of your family. Please provide occupational history and indicate all income that you and your spouse have received from various sources such as:

  • All income earned from employment, business or any other profession including salary, bonuses, premiums, commissions, allowances, compensation, dividends, etc., broken down by year.
  • Capital gain from any investment
  • Capital gain from sale of property or business
  • Rental income, interest, dividend or other income
  • Gift, inheritance or any other compensation received, and
  1. explain how you have received the income from various sources such as through cash, bank transfer, cheque, etc.
  2. provide the documents from the objective third party. Self-serving documents prepared by the applicant, relatives or friends are not as credible as documents from third parties, such as governmental authorities and banks.
  3. follow the Document Check List, particularly items 11, 12 and 13 to enclose the supporting documents to substantiate your accumulation of claimed net worth.

Merely declaring income or inheritance of assets is not sufficient information to convince the MPNP-B that you have earned such income or acquired assets in the past. You must provide details of your income from all sources, including capital gains, rental income, etc. You must consider all your investments and living expenses when accounting for your accumulated net worth. The MPNP-B will consider the value of assets, liabilities, income and expenses of your spouse and dependent children. However, the same must be reported when providing the details of your net worth. All such claims must be supported by sufficient and credible documents. Some of these supporting documents might include copies of bank statements, individual/business tax receipts/returns or any other documents which you feel are appropriate to substantiate this information.

The difficulty of documenting the lawful source of income varies greatly by country. It can be especially difficult in countries where no tax returns are required to be filed or where full disclosure of revenues and profits on tax returns is the exception rather than the rule. In some cases, individual income tax returns may not reflect the level of income commensurate with the investment being made or net worth being accumulated. Where tax returns show low income or no tax returns are filed, the documentation for source of income should provide overwhelming evidence, through substantial additional documentation, to counter the negative implication that comes from a review of limited financial documentation. The requirement of substantial additional documentation varies from case to case and depends on the situation of the particular applicant.

If you have paid very low or no individual income tax or your bank account does not demonstrate your regularly earned income from your employment, business or profession for the past several years, this can be a reason for the refusal of your application.

If you have purchased real estate or you have invested in a business or other investments over a period of time, it is necessary to fully explain the sources of initial investment into the property, business or other investments. Any records/documentation that can be provided will assist in the review of the application.