MCK issues update re Quebec Health Contribution Plan fee

07/29/2013

The Mohawk Council of Kahnawà:ke (MCK) would like to update Kahnawa’kehró:non regarding Quebec’s Health Contribution Plan (the annual $200 fee the province has implemented to offset provincial Medicare costs). The Plan affects individuals who earn their income off-reserve or who may have money that is being held off-reserve, such as pensions, social security and supplements.

The MCK is extremely concerned with the effect this is having on those who are subject to the fee and it will be engaging with the province at a specifically set up table between Kahnawà:ke and Quebec to discuss taxation issues.
 
"The increasingly negative effect this ′healthcare contribution′ is having on our people, mostly our elders and retirees, is the reason we will initiate discussion with Quebec to remove this deduction from all people who cannot afford it" said Grand Chief Mike Delisle Jr. "We will begin the discussions on this and other problematic taxation issues as quickly as possible."

Discussions are scheduled to begin sometime in September of this year.

The MCK has brought the issue to Aboriginal Affairs & Northern Development Canada who claims that health care is the domain of the provinces and Quebec has the right to manage their health system the way they see fit. The province’s position is that such off-reserve income is taxable and believes that this allows them to assess the fee to those in the above positions.  

Community members who derive their income entirely from within the Territory are not subject to the fee. Further, those who earn less than $14,730 off-reserve annually or have less than that amount in off-reserve holdings will not be affected.
 
For more information on this matter, please contact MCK Tax Consultant John Latour at 450-632-7500 Monday to Wednesday.