35.1. Retraite Québec must remit any amount owed to it if the debtor demonstrates that all income determined pursuant to the second paragraph is less than the low-income cutoff determined pursuant to the third paragraph. If all the income is equal to or greater than the cutoff, the amount owed to be remitted must be reduced by 20% for each slice of $1,000 of surplus income.
The income is that of the debtor and of his dependents, coming from all sources, for the 12-month period preceding the month during which the notice of claim was made by Retraite Québec, without considering the overpayment made by Retraite Québec.
The low-income cutoff corresponds to the total income indicated in the table “Low income measures by income concept, for household size of four persons”, accessible on the website of Statistics Canada via the navigation element entitled “Low income lines - Tables and figure”, for the year preceding by 2 years the year in which the notice of claim was made by Retraite Québec. That threshold is adjusted to take into account the size of the household, using the method described in that table.
The first paragraph does not apply in cases of fraud or where a partial remittal of a debt has already been made pursuant to that paragraph in respect of the amount owed. It does not apply where the debtor may make the choice provided for in section 147.0.3 of the Act.
O.C. 1321-95, s. 3; T.B. 211915, s. 1.