Coronavirus (COVID-19)

Click Coronavirus Disease (COVID-19) to see whether the measures adopted by Revenu Québec apply to the information on this page.

Published

Dividing certain contributions and premiums between the periods that precede and follow a bankruptcy

Beginning in the 2014 taxation year, certain contributions and premiums must be divided between the two returns to be filed further to a bankruptcy (that is, the return for the period before the bankruptcy and that for the period after the bankruptcy) rather than entered only in the return for the period after the bankruptcy.

The contributions and premiums in question are:

  • the Québec Pension Plan (QPP) contribution on income from self-employment
  • the Québec parental insurance plan (QPIP) premium on income from self-employment
  • the contribution to the health services fund

If you declare bankruptcy, you can irrevocably elect to make QPP contributions on your income from self-employment while taking into account your income subject to the contribution for the entire calendar year. If you do so, the entirety of your income for the year will be entered in the QPP's Record of Contributors. For information on making the election, see the guide to the income tax return (TP-1.G-V).

The premium payable under the Québec prescription drug insurance plan, however, must be calculated only in the return for the period following the bankruptcy. Simply calculate the premium as though you had not declared bankruptcy, and we will calculate the amount of the premium attributable to the period and income following the bankruptcy. Or, if you prefer, you can calculate the premium yourself using the table below. The calculations it contains will ensure that the total of the amounts calculated for the periods before and after the bankruptcy does not exceed the result that would have been obtained for the year had you not declared bankruptcy.

Income tax return for the period before the bankruptcy
QPP contribution (self-employed person)
QPIP premium (self-employed person) Contribution to the health services fund

Must be calculated based on the income for the period before the bankruptcy that is subject to the contribution or premium, as though that period were a full year. As a result, no reduction is to be applied to the income thresholds that apply for purposes of the QPIP and the health services fund or to the QPP exemption*, other than those already provided for under the Act respecting the Québec Pension Plan (that is, the exceptions concerning individuals who, during the year, turn 18, become disabled or cease to be disabled).

* For the 2014 taxation year, the income thresholds for purposes of the QPIP and the health services fund are $2,000 and $14,135, respectively. The amount of the QPP exemption is $3,500.

Premium payable under the Québec prescription drug insurance planNo calculation is necessary, since the premium is based on, among other things, annual family income.
Income tax return for the period after the bankruptcy
QPP contribution (self-employed person)
QPIP premium (self-employed person) Contribution to the health services fund

Each contribution and premium is equal to the result of one or the other of the following calculations, whichever is less.

Contribution or premium
for the year
Contribution or premium for the period
before the bankruptcy

or

Contribution or premium
for the year
×
(
Income for the period after the bankruptcy
that is subject to the contribution or premium
Income for the year that is subject
to the contribution or premium
)
Premium payable under the Québec prescription drug insurance plan
  1. The total premium payable for the year (line 90 of Schedule K) must be calculated.
  2. The premiums for the months after the month of the bankruptcy must be calculated in either of the two ways shown below.
    • If the premium payable for the year (line 90 of Schedule K) is equal to the amount on line 86:
      Amount on line 86
      [
      (
      Amount on line 84
      12
      )
      ×
      Number of months before the bankruptcy (including the month of the bankruptcy) for which the individual is subject to a premium
      ]
    • If the premium payable for the year (line 90 of Schedule K) is equal to the amount on line 89:
      Amount on line 89
      (
      Premium for each of the first 6 months of the year*
      ×
      Number of months before the bankruptcy (including the month of the bankruptcy) included in first 6 months of the year and for which the individual is subject to a premium
      )
      (
      Premium for each of the last 6 months of the year **
      ×
      Number of months before the bankruptcy (including the month of the bankruptcy) included in the last 6 months of the year and for which the individual is subject to a premium
      )

      * For the 2014 taxation year: $50.58
      ** For the 2014 taxation year: $50.92

  3. The result obtained above must be multiplied by the result of one of the following calculations, depending on the individual's situation.
    • If the individual does not have a spouse:  
      Individual's net income for the
      period after the bankruptcy
      Individual's net income for the year
    • If the individual has a spouse:
      Individual's net income for the
      period after the bankruptcy
      +
      Spouse's net income
      for the year
      Individual's net income
      for the year
      +
      Spouse's net income
      for the year

For more information, click Bankruptcy or refer to the guide to the income tax return (TP-1.G-V).

Fair. For all.

One vision. Concrete actions.

Read all about how we work to support and inform you. Our vision and values guide us as we carry out our role.

Veuillez patienter