Through Indemnisation des victimes d’actes criminals (IVAC) or crime victim compensation, victims of crimes can receive money as compensation for their losses. However, a common question by people entitled to IVAC is whether their compensation is taxable.
In order to answer that question, it’s necessary to understand the different rules regarding taxation and exemptions when it comes to receiving financial aid through the program. In this article, we examine all of these details so that you have a better idea of whether or not your IVAC award is subject to taxes.
What Is IVAC?
IVAC is a program in Quebec that compensates and supports anyone impacted by a crime. This includes victims, first aiders, response teams, and witnesses in addition to direct crime victims. The system provides financial compensation and support to those who qualify. It aims to prevent individuals from dealing with criminal incidents alone.
There are many kinds of compensation that you might be entitled to when claiming IVAC including compensation for loss of employment income, disability benefits, cost of illness, and compensation for psychological therapy. To file a claim, you have three years from the day you become aware of physical or psychological symptoms. Exceptions apply to victims of domestic violence, child abuse, and sexual violence after March 1, 1972. If you miss the three-year deadline, you can still request special consideration with a valid reason.
Are The IVAC Compensations Taxable?
Understanding whether IVAC indemnities are taxable is a critical question for many people. It’s important to know what you can expect from the compensation you are given. IVAC recognizes the repercussions of a crime are extremely stressful and traumatic for the victims involved, which is why the compensation that they afford is completely tax-free in order to balance the scales of insufficient earnings due to the occurrence of a crime.
Why Do I Have To Provide Objective Proof Of Injury With My Application For Benefits?
When applying for benefits, it is important to provide objective proof of injury. This evidence can be used to determine the period of time over which the individual has been affected by their current condition and any pre-existing conditions. It also helps to prove that a criminal offense was committed that had a direct effect on your life.
Objective proof of injury may include ongoing expenses related to medical care, overhead expenses such as travel costs, compensation for funeral expenses in cases where a death occurred, etc. It is therefore extremely important to continuously log the expenses you are incurring that have accumulated in relation to the crime you experienced.
Providing complete and accurate information about your medical history and all related documents is essential when submitting an application for benefits. The more detailed this information is, the easier it will be to assess the level of damage incurred and ensure appropriate levels of compensation are granted.
Can I Be Compensated By IVAC If I Was The Victim Of A Crime Outside Quebec?
When it comes to receiving compensation from IVAC, there are certain conditions you must meet. To be eligible for the benefits provided by IVAC, one must have suffered physical or psychological harm as a result of an act of criminal offense committed in Quebec. It’s important to note that this does not include critical illness due to high-risk activities, start-up activities, or development and engagement activities.
One also needs to fulfill consecutive time requirements and obtain minimum coverage before being able to apply for additional coverage with IVAC. This means that if you were the victim of a crime outside Quebec, your application for benefits will not stand.
What Compensation Is Offered By IVAC?
IVAC offers indemnities to victims of a criminal offense in Quebec. These may include monetary compensation as well as income support. Here’s a look at some of the benefits offered by IVAC:
Income Support
One of the key ways in which IVAC provides compensation to crime victims is by making up for insufficient income from a lack of ability to work. If you are unable to work due to physical or mental incapabilities following a crime, IVAC will set up an income support period in which you can be provided with up to 104 weeks of income support, depending on individual circumstances.
Moreover, you might also be eligible for an adjustment of income if you experience a decrease in business income caused by a crime. Essentially, IVAC will assess your sources of income to see what you are missing out on as a result of the crime committed and will aim to provide income security in the time it takes you to recover.
Medical Treatment
It is often the case that crime victims suffer from both physical and mental injuries that require medical treatment. These medical treatments can be costly and are therefore covered by IVAC. Simply providing IVAC with a report of your current health condition with all the treatments you have received/are receiving will ensure that you are fairly compensated for the cost of illness, both mental and physical.
Death
Unfortunately, there are many crimes that lead to the death of a victim, which IVAC will heavily compensate for. If a crime victim dies under a criminal code offence, their family will receive financial support for things such as burial expenses, crime scene cleaning, and transportation of the body. If you are a parent, spouse, or dependent of the deceased, you will be entitled to compensation.
What compensation does IVAC offer?
Legal Services
Legal services can be a valuable resource for those seeking information and guidance related to compensation following the occurrence of a crime. There is so much at stake for crime victims from loss of employment income to medical costs incurred, which is why it is essential that you make a claim to IVAC to receive the compensation you are entitled to.
At Accident Solution, our lawyers specialize in IVAC compensation which ensures additional coverage for the compensation you deserve. We will talk you through the process, helping you gather all the relevant evidence needed to make sure every cost you have incurred following a criminal offence is covered by IVAC.
