When Is Income 'Earned' And Therefore Deductible? Case Study: A.S. And Economical

The issue becomes contentious with claimants who continue to earn income after an accident at a changed or reduced capacity.

Case Details

• A.S. was a chiropractor who operated a chiropractic clinic prior to sustaining injury in an accident of November 18, 2015.
• He performed all chiropractic services and was solely responsible for all business operation decisions up to that time.
• After the accident, he withdrew from the clinic and hired another chiropractor to take his place.
• He continued to attend the clinic to sign cheques, chat with patients, and administer minor treatments.
• A new doctor was responsible for the day-to-day operations of the business.

• A.S. continued to earn income after the accident, at just over half of his pre-accident income level ($63,175.08 in contrast to $124,997.90 the year before).

A.S. took the position that he was not actively engaged in the business and therefore not "earning" income.

The adjudicator thought otherwise.

• A.S continued to make major business decisions for the clinic.
• He continued to pay salaries and hire staff.
• Also significant was the fact his income was just over half of his pre-accident level, which was interpreted to mean "he was still involved substantially in the running of the business, and not in a nominal manner."

But even if A.S. was not "actively" engaged in the business, the definition of income under the SABS would still require a deduction from the Income Replacement Benefit. As the adjudicator wrote:

Read the full case decision - FSCO 16-003197/AABS.

Footnotes

^{1 A.S. and Economical, Robert Watt (FSCO 16-003197/AABS, January 10, 2018).}

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