A-25, r. 7 - Regulation respecting the determination of income and employment and the payment of the indemnity in section 83.30 of the Act

Section 10 Disposition versions

2012-09-01

10. To compute the amount equivalent to the income taxes according to the tables established under the Taxation Act (chapter I-3) and the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)), taxable income is the gross income computed in accordance with Division I, minus:

(1)  the yearly premium payable:

(a)  under the Employment Insurance Act (S.C. 1996, c. 23) and determined in accordance with section 11;

(b)  under the Act respecting parental insurance (chapter A-29.011) and determined in accordance with section 11.1;

(2)  the yearly contributions applicable under the Act respecting the Québec Pension Plan (chapter R-9) and determined in accordance with section 12;

(3)  the annual amount of support actually being paid at the time of the accident, the deduction of which is permitted under the Taxation Act and the Income Tax Act, subject to the following maxima:

(a)  when the victim’s total income does not exceed the Maximum Yearly Insurance Earnings provided for by the Act, the total pension amount must be deducted; or

(b)  when the victim’s total income exceeds the Maximum Yearly Insurance Earnings provided for by the Act, only the amount obtained by multiplying the amount of the pension by the fraction of the Maximum Yearly Insurance Earnings provided for by the Act over the victim’s total income must be deducted;

(4)  the basic personal exemption;

(5)  the married person’s exemption in cases where the victim has a spouse, without taking into account the latter’s income;

(6)  the exemption equivalent to the married person’s exemption where applicable under the Taxation Act or the Income Tax Act, if the married person’s exemption has not already been deducted, without taking into account the dependant’s income and, in cases where more than one person may be considered for such exemption, by choosing the person for which the dependant’s exemption is the lowest; and

(7)  the dependant’s exemption, where applicable under the Taxation Act and the Income Tax Act, without taking into account the dependant’s income, and excluding persons for whom a married person’s exemption, an exemption equivalent to the married person’s exemption or support has already been deducted.

The premium and the contributions established in paragraphs 1 and 2 are not used in computing where they are included in the basic personal exemption provided for in paragraph 4.

The exemption amounts are those prescribed in the Taxation Act and the Income Tax Act. However, they must be computed by taking into account the definition of “spouse” and “dependant” under section 2 of the Act.

The amount equivalent to the income tax is equal to the amounts of income tax payable in accordance with the income tax tables and taking into account the taxable income determined in the first paragraph and the federal income tax abatement that applies to Québec.

Where the Taxation Act and the Income Tax Act replace the exemptions provided for in their respective provisions on income tax credits, those credits apply for purposes of calculating the net income.

Exemptions which generate income tax credits must not be taken into consideration when computing the taxable income.

O.C. 1923-89, s. 10; O.C. 1247-2005, s. 2; O.C. 13-2009, s. 1.