Child Support Capacity to Pay Investigations

Introduction

The Child Support Agency (CSA) conducts Capacity to Pay (CTP) investigations when they suspect a parent may have a greater capacity to pay child support than their declared income suggests. These investigations can be complex and stressful for fathers. Understanding the process and your rights is essential for navigating CTP investigations effectively.

What is a Capacity to Pay Investigation?

A CTP investigation is a detailed examination of your financial circumstances to determine if you have the capacity to pay more child support than your current assessment indicates. The CSA may investigate when:

• Your declared income seems inconsistent with your lifestyle
• There are allegations of income minimization
• You have significant assets but low declared income
• There are concerns about undeclared income sources
• Your ex-partner has raised concerns about your financial capacity

The Investigation Process

Initial Contact

The CSA will typically:

• Send you a letter explaining the investigation
• Request specific financial documents
• Set deadlines for providing information
• Explain the potential consequences
• Provide contact details for the investigating officer

Information Gathering

During the investigation, the CSA may:

• Request bank statements and financial records
• Examine tax returns and business records
• Contact third parties (employers, banks, accountants)
• Review asset ownership and transactions
• Investigate lifestyle and spending patterns
• Gather information about new partners' finances

Assessment and Decision

The CSA will:

• Analyze all gathered information
• Determine your actual capacity to pay
• Make a decision about your child support assessment
• Notify you of the outcome in writing
• Explain reasons for any changes

Your Rights During Investigation

How to Respond to CTP Investigations

Immediate Steps

• Read all correspondence carefully
• Note all deadlines and requirements
• Gather requested documents promptly
• Seek legal advice if needed
• Respond within specified timeframes

Providing Information

• Be honest and transparent
• Provide complete and accurate information
• Explain any unusual circumstances
• Keep copies of all documents provided
• Follow up to confirm receipt

Common Mistakes to Avoid

• Ignoring CSA correspondence
• Providing incomplete information
• Missing deadlines
• Being uncooperative or hostile
• Failing to seek legal advice when needed

Possible Outcomes

No Change to Assessment

• Investigation finds no evidence of greater capacity
• Current assessment remains unchanged
• No further action required

Increased Assessment

• CSA determines you have greater capacity to pay
• Child support assessment increased
• May be backdated to investigation start
• New payment arrangements required

Departure from Formula

• CSA may apply to court for departure orders
• Court determines appropriate child support amount
• Based on actual capacity rather than income
• Can result in significantly higher payments

Challenging CTP Decisions

Internal Review

• Request CSA to review their decision
• Provide additional evidence or explanations
• Must be requested within 28 days
• Different officer reviews the case

External Review

• Apply to Administrative Appeals Tribunal (AAT)
• Independent review of CSA decision
• Can present evidence and legal arguments
• May require legal representation

Prevention Strategies

To minimize the risk of CTP investigations:

• Ensure accurate income reporting
• Keep detailed financial records
• Report income changes promptly
• Maintain transparency with CSA
• Seek professional advice for complex situations
• Consider voluntary disclosure if circumstances change