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Hepatitis C - Class Actions Settlement
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Loss of Income / Loss of Support / Loss of Services
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Loss of Support

LOS Fundamentals

In this section:

LOS Calculation - An Illustration (top)

In order to calculate the value of any Loss of Support claim, the Administrator must first proceed with calculating the value of the deceased HCV Infected Person's lost income.

The following table illustrates how an Annual Loss of Support claim is calculated:

LOS Calculation Explained (top)

Pre-Claim Gross Income

Pre-claim Gross Income is an amount equal to the average of the deceased HCV Infected Person's 3 highest consecutive years of Earned Income prior to the deceased HCV Infected Person's entitlement to compensation. The Pre-claim Gross Income will not exceed $300,000 multiplied by the ratio that the Pension Index for the year bears to the Pension Index for 1999.

OR

Pre-claim Gross Income is an amount equal to the then most recently available Average Industrial Wage in Canada if a deceased HCV Infected Person meets one of the following criteria:

  1. He or she was not working prior to his or her infection with HCV AND he or she was infected either before he or she attained 18 years of age;
    OR
  2. He or she had attained 18 years of age, while he or she was in full-time attendance at an accredited education institution in Canada AND did not yet enter the workforce on a permanent and full-time basis.
Ordinary Deductions

Ordinary Deductions means income taxes, Unemployment/ Employment Insurance, and Canada Pension Plan/Quebec Pension Plan deductions applicable in the province or territory where the Approved Class Member is resident.

Post-claim Gross Income

Post-claim Gross Income is the total of the following types of income received by the deceased HCV Infected Person’s dependants as a result of the death of the person:

  • Canada Pension Plan/Quebec Pension Plan Survivor Benefits
  • EAP benefits
  • MPTAP benefits
  • Nova Scotia Compensation Plan benefits
Personal Consumption

The Annual Loss of Net Income must be reduced by an amount equal to 30% of the net amount as calculated to allow for the personal living expenses of the HCV Infected Person.

Earned Income (top)

Earned Income means taxable income for the purposes of the Income Tax Act from an office or employment or from carrying on an active business.

Earned Income can include: Types of income that CANNOT be claimed as Earned Income:
  • Employment income
  • Commission income
  • Income from self-employment (i.e. business, professional, farming, fishing)
  • Rental income
  • Interest/Dividends/Capital gains/RRSP income
  • Pension/Superannuation/Old Age Security
  • Retiring allowance/Severance Pay
  • Rental income (if considered passive investment income)
  • Scholarship
  • Unemployment/Employment Insurance benefits
  • Canada Pension Plan benefits
  • Social Assistance benefits
  • Workers Compensation benefits

Financial Documents Required (top)

  • a complete T1 Income Tax return and Notice of Assessment
  • business financial statements
  • T2 Corporation Income Tax return and Notice of Assessment
  • T4/T4A slips
  • T1 Income Tax summary

What is Net Income? (top)

The following table illustrates how Net Income is calculated:

Deductions and Tax Credits
For the purposes of all income tax calculations, the only Deductions and Tax Credits that will be used, if applicable, are the following:

  • alimony and maintenance payments deduction
  • basic personal tax credit
  • married person’s or equivalent to married tax credit
  • disability tax credit
  • unemployment/employment insurance premium tax credit
  • Canada Pension Plan/Quebec Pension Plan contribution tax credit

IMPORTANT NOTE! (top)
Information herein is based on Section 4.02(2) (Sch. A - Transfused HCV Plan), or Section 4.02(2) (Sch. B - Hemophiliac HCV Plan) of the 1986-1990 Hepatitis C Settlement Agreement, and is provided solely to assist Approved Class Members in determining whether or not they should apply for compensation for Loss of Income.

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