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:
- 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
- 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.
|
