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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 

Compensation from this Settlement is not taxed federally in Canada, which means you will not need to pay income tax on your compensation to the federal government. The Canada Revenue Agency has confirmed that compensation from this Settlement does not have to be included as income on your annual tax returns.

The Government of Canada has tax collection agreements with all provinces and territories except Québec, which means that those provinces and territories use the same tax rules as the federal government for personal taxable income. As a result, you do not have to pay provincial or territorial income tax on your compensation if you are a resident of one of those provinces or territories. Revenu Québec has also confirmed that compensation from this Settlement does not need to be included on your Québec income tax return. As a result, you do not have to pay Québec income tax on your compensation. 

Social benefits

Benefits administered by the Canada Revenue Agency and are based on federally taxed income are not affected by compensation from this Settlement, including:

  • Canada Child Benefit (CCB)
  • GST/HST credit
  • Canada Workers Benefit

Benefits administered by Revenu Québec are not affected by compensation from this Settlement, including:

  • Family Allowance Credit
  • Solidarity Tax Credit
  • Work Premium Tax Credits

Many other social benefits and social assistance programs are provided by other federal government departments and other levels of government. Programs administered by other federal departments include:

  • Employment Insurance
  • Guaranteed Income Supplement
  • Old Age Security
  • Canadian Pension Plan

Provincial, territorial or other local social benefit programs include income support, food, clothing and shelter, among many other programs.

See the FAQ from the Canada Revenue Agency (CRA); more information will be provided when it is available.

Support and help 

Support is available throughout the Claims Process. 

For help with completing your Claim, contact the Administrator toll-free at 1‑833‑852‑0755. If additional assistance is needed, you may be referred to a Claims Helper who can also connect you with wellness and cultural supports.

For information on the taxation of your compensation specific to your situation, please contact a tax advisor who is familiar with First Nations taxation. If you choose to hire a professional financial advisor, you will have to pay their fees yourself.

Some benefit programs may look at total income (regardless of whether it is taxable), savings and asset thresholds to determine eligibility and benefits. If you have questions on how the Settlement might apply to your specific benefits, you can contact the Administrator toll-free at 1‑833‑852‑0755 and they can direct you on how to obtain more information.

Wellness support

Free mental health and wellness support is available 24 hours a day through the Hope for Wellness Helpline at 1‑855‑242‑3310 or online at HopeForWellness.ca.

Support is available in English, French, Cree and Ojibway (Anishinaabemowin) on request.