Individual Entrepreneur Income Calculation for Free Legal Aid Eligibility

The court addressed an appeal concerning the denial of free legal aid, requiring the determination of an individual entrepreneur's income for the purpose of the application. The court reasoned that the income of an individual entrepreneur for such proceedings can be calculated either based on the balance sheet, using the change in equity adjusted for net private withdrawals and capital contributions, or based on the profit and loss statement, derived from the surplus of revenues over correctly determined expenses (excluding items like inflated expenses or owner's salary/interest). Private withdrawals are viewed as effective benefits taken from the business, essentially an advance on profit.