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Here’s what you need to know about taxation and social benefits as is relates to receiving compensation from this Settlement.
Taxation
You do not need to pay federal or provincial income tax on your compensation payment from this Settlement.
This means that you do not need to include your compensation as income on the annual tax return you submit to the Canada Revenue Agency.
If you live in Québec, you do not need to pay Québec income tax on your compensation payment or include it as income on your provincial tax return.
Important: How you choose to save, spend or invest your money may have future tax implications. Ask your bank, credit union or a financial professional how using certain accounts and products might affect your taxes.
Social benefits
Benefits administered by the Canada Revenue Agency are not affected by compensation from this Settlement, including:
- Canada Child Benefit (CCB)
- GST/HST credit
- Canada Workers Benefit
Benefits administered by Employment and Social Development Canada (ESDC) are also not affected, including:
- Employment Insurance
- Guaranteed Income Supplement
- Old Age Security
- Canadian Pension Plan
See the full list of benefits administered by ESDC.
Benefits administered by Revenu Québec are not affected by compensation from this Settlement, including:
- Family Allowance Credit
- Solidarity Tax Credit
- Work Premium Tax Credits
Social benefits and assistance programs provided by other federal government departments and other levels of government may be affected. More information will be provided when it is available.
Provincial, territorial or other local social benefit programs include income support, food, clothing and shelter, among many other programs.
Check with your benefit providers for more information.
Support and help
Support is available throughout the Claims Process.
Looking for more?
The links below lead to trusted external resources explaining how compensation may affect taxes, credits, and benefits.
Prosper Canada
- Prosper Canada’s Benefits Wayfinder tool (external link) – find federal, provincial, and territorial benefits and credits you may be eligible for.
Government of Canada – FCAC
- Canada Revenue Agency’s Taxes and benefits for Indigenous peoples page (external link) – information about benefits, credits and tax-exempt income under section 87 of the Indian Act.
- Canada Revenue Agency’s “Factsheet: Indigenous Peoples” (external link) – how tax rules, benefits and credits apply to First Nations, Inuit and Métis individuals.
- Canada Revenue Agency’s Learn About your Taxes course (external link) – basics of income tax and how to file your return.
