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4.—(1) The Variations Regulations are amended as follows.
(2) In regulation 1(2) (citation, commencement and interpretation), after the definition of “capped amount” insert—
““the Commission” means the Child Maintenance and Enforcement Commission;”.
(3) In regulation 19 of the Variations Regulations (income not taken into account and diversion of income), for paragraph (4) substitute—
“(4) A case shall constitute a case for the purposes of paragraph 4(1) of Schedule 4B to the Act where—
(a)the non-resident parent (“P”) has the ability to control the amount of income that—
(i)P receives, or
(ii)is taken into account as P’s net weekly income,
including earnings from employment or self-employment, whether or not the whole of that income is derived from the company or business from which those earnings are derived; and
(b)the Commission is satisfied that P has unreasonably reduced the amount of P’s income which would otherwise fall to be taken into account under the Maintenance Calculations and Special Cases Regulations or paragraph (1A) by diverting it to other persons or for purposes other than the provision of such income for P.
(4A) In paragraph (4), “net weekly income” has the same meaning as in the Maintenance Calculations and Special Cases Regulations.”.
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