News

April 9, 2008

CRA makes major improvements to its site for persons with disabilities.

Click here for step by step guidelines to assist you with your application for the DTC.

Click here to access the T2201 form.

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July 5, 2007

The Canadian Psychological Association provides guidelines to assist doctors when assessing persons with mental impairments for the DTC

Psychology, psychiatry and family medicine have been working with the ministries of finance and revenue for some time, reviewing and revising eligibility criteria for the DTC as concerns persons with impairments in mental functions.

Click here to access the PDF file at the Canadian Psychological Association's website.

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March 1, 2007

Memo to patients and their doctors on the recent changes to the Disability Tax Credit (DTC) Certificate Form T2201 for persons with mental impairments

The qualified practitioner is only required to complete the page that applies to the patient as well as the last page on the "Effects of the Impairment." For example, a doctor completing the T2201 form for a patient with a severe and prolonged mental impairment is only requited to complete pages 6 and 9.

A patient is considered markedly restricted in performing the mental functions necessary for everyday life if, all or substantially all of the time, he or she is:
• unable to perform the mental functions necessary for everyday life or
• requires an inordinate amount of time to perform the mental functions necessary for everyday life.

Mental functions necessary for everyday life include:
• Adaptive functioning (i.e. abilities related to self care, health and safety, social skills and common, simple transactions);
• Memory (i.e. ability to remember simple instructions, basic personal information such as name and address, or material of importance and interest): and
• Problem-solving, goal-setting and judgement (i.e. the ability to solve problems, set and keep goals, and make appropriate decisions and judgements.

Please note: A marked restriction is required in only one of the mental functions in order to qualify for the DTC.

The recent revisions to the section on Mental Functions in the DTC Certificate are the result of the Tax Court of Canada decision, Buchanan vs. The Queen 2000 which was upheld by the Federal Court of Appeal.

Judge Campbell ruled that Jim Buchanan, who suffers from bipolar disorder, qualified for the DTC because “he is unable to perform the necessary mental tasks required to live and function independently and competently in everyday life… His judgement does not permit him to function reasonably and independently.”

Judge Campbell recognized that Buchanan is very capable in a number of areas (for example, he drives a car and volunteers on several committees) but still, he is dependent on the “constant supervision, care and support” of his wife.

Many individuals with serious mental impairments are dependent on family members because of their dysfunctional thinking, reckless judgment (especially in financial affairs), impulsive behaviour, irrational actions and their inability to make appropriate decisions or set goals for themselves. They may be oblivious to their own health and safety needs or personal hygiene. Their memory and ability to concentrate may be severely impaired preventing them from acting on matters of importance (for example, paying bills or filing income tax forms on time).

Others may be able to live independently but it takes them much longer, than an average person, to carry out basic mental tasks.

Although the signs and symptoms of serious mental illnesses are often intermittent, individuals who have been hospitalized on one or more occasion since the onset of the illness and who are continuously at risk of another episode (even with medication) generally qualify for the DTC.

The Canada Revenue Agency (CRA) has also recognized that the unpredictable expression and resurgence of symptoms may require careful life management for some individuals and therefore they may also be eligible for the DTC.

Access the CRA website for further information.

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January 4, 2006

The new DTC form T2201 for the 2005 tax year has been been posted on the Internet.

The lobbying efforts of the disability community and the work of the Technical Advisory Committee have paid off. The new T2201 form expands the eligibility criteria for persons with severe and prolonged impairments and clarifies the eligibility criteria for individuals requiring life-sustaining therapy.

Find out from the candidates running for election where their party stands on key issues affecting persons with schizophrenia, bipolar disorder and major depression, including timely access to new and innovative medications.

Click here to download the PDF file to send to candidates in your riding.

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December 15, 2005

The election call has prevented the controversial proposed amendments to the Income Tax Act from being adopted by the government.

Controversial legislative changes to the Income Tax Act were tabled in the House of Commons on November 17, 2005. These amendments would have tightened the eligibility criteria for persons with mental impairments and children with juvenile diabetes. Such a Bill would have had devastating financial consequences to some of our most vulnerable citizens. With the election call, the Bill will have to be reintroduced.

It is not too late to keep Fighting for Fairness.

The Department of Finance disregarded the recommendations of the Technical Advisory Committee in its report Disability Tax Fairness with respect to persons with mental impairments and children with juvenile diabetes.

Now is the time to ask the candidates running for office about their policies toward persons with disabilities. Ask whether or not they support further restrictions to the eligibility criteria of the DTC. Don't be surprised if they don't know what you are talking about. Not everyone reads the fine print of the Bills introduced in the House of Commons.

Besides, no one could have expected the Department of Finance to continue to take advantage of the disabled in an effort to reduce the overall cost of the DTC program. Not after the House of Commons, in an unanimous vote in November 2002, called for changes to the eligibility requirements of the DTC so that they will incorporate in a more humane and compassionate manner the real life circumstances of persons with disabilities.

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August 15, 2005

Minister of Finance proposes controversial legislative changes to the Disability Tax Credit.

The Minister of Finance has released draft amendments to the Income Tax Act "improving the disability tax credit and making it more widely available."

I am not so sure.

Some of the proposed amendments are more restrictive than the recommendations made by the Technical Advisory Committee (TAC) in its report Disability Tax Fairness that were adopted in the 2005 Budget.

In the 2005 Budget, the mental functions necessary for everyday living are defined as follows:
- Memory problems;
- Problem-solving, goal-setting and judgement;
- Adaptive functioning.

The proposed amendment has interjected the words taken together in the second example, i.e. Problem-solving, goal-setting and judgement taken together.

The restrictive phrase "taken together" must be removed.

The two words taken together will discriminate against persons with serious mental illnesses who have problems with judgement as far as finances are concerned and therefore may not be able to function independently with reasonable competence. However, they may not be markedly restricted in the areas of problem-solving and goal-setting.

In June 1993, when we were in Toronto, my husband Jim purchased a Jaguar. He had a specific goal in mind: to buy a Jaguar for our son Jonathan who was going out West to the University of British Columbia in September. He had no problem solving the dilemma that we couldn't afford such a luxury car for ourselves, let alone our teen-age son. The solution was simple: Jim traded in our Land Cruiser (a four-wheel drive vehicle is a basic necessity in Northern Ontario) and put down a deposit of $1,000 on his American Express card. He planned to arrange the rest of the financing with the bank on the next business day.

There is no question that Jim's judgment was seriously impaired. (Reckless spending is a classic symptom of mania for persons with bipolar disorder.) It never occurred to him that we would be stranded in Toronto. In fact, Jim was hospitalized the following day because he was seriously ill even though there were no obvious signs and symptoms that he was also a danger to himself and others.

In its report, TAC recommended that Life-Sustaining Therapy, in particular for children with juvenile (Type 1) diabetes, "includes activities, such as monitoring of blood sugar levels and determining insulin dosages, as indicated in recent Tax Court decisions."

In the proposed legislative amendment, "the time spent on administering therapy includes only time spent on activities that require the individual to take time away from normal everyday activities in order to receive therapy" including the time spent on "activities directly involved in determining the appropriate dosage (of insulin)."

However, the proposed amendment does not include the time required to calculate of number of carbohydrates (which is essential in order to determine the insulin dosage). The time spent on activities related to dietary restrictions is excluded "even if these restrictions or regimes are a factor in determining the daily dosage of medication."

The exclusion of calculating carbohydrates as part of the therapy contradicts the position taken by Minister Ralph Goodale. He acknowledged in a letter dated May 6, 2005 that, "where therapy has been determined to require a regular dosage of medication (insulin) that needs to be adjusted on a daily basis, the activities directly involved in determining the appropriate dosage (insulin) will be considered part of therapy."

Excluding the determination of the number of carbohydrates in order to calculate the insulin dosage is a restriction that has no medical basis. It certainly defies common sense.

Such a restriction has no foundation in law. Indeed, such a restriction makes a mockery out of a number of recent Tax Court decisions as well as the deliberations by TAC.

Calculating carbohydrate intake and calculating the insulin dosages are inextricably tied together. They cannot be separated. One can’t be determined without the other. Any effort to do so can result in death and criminal charges.

These proposals are being released in draft form so that taxpayers and their advisors will have an opportunity to comment on them before they are introduced in Parliament. Comments are requested by September 30, 2005.

Please take time to voice your opinion on the proposed amendments to the Income Tax Act. Once they are passed by Parliament, they become law.

Tax Legislature Division
140 O'Connor Street
17th Floor, East Tower
Ottawa, ON K1A 0G5

Please make sure that you send a copy to the Honourable Ralph Goodale, Minister of Finance, House of Commons, Ottawa, ON K1A 0A6 and to your Member of Parliament.

There is no postage required for mail addressed to the House of Commons.

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July 19, 2005

How will the new Disability Advisory Committee ensure tax fairness for persons with disabilities?

"I am pleased to announce that the CRA has created the Disability Advisory Committee," stated the Minister of National Revenue John McCallum.

"This committee will provide a forum to identify the needs and expectations of the disability community. It is crucial that persons with disabilities be treated equally and fairly, and I am confident that the members of the committee will help us achieve this."

The Disability Advisory Committee is an important consultative forum through which members can provide helpful advice, comments, and suggestions on tax measures for persons with disabilities. It will report directly to the Minister of National Revenue on all administrative aspects of the tax system related to persons with disabilities.

In December 2005, the Technical Advisory Committee on Tax Measures for Persons with Disabilities, established in February 2003 by the federal government, made a number of recommendations to improve fairness of the income tax system including the creation of a consultative committee made up of consumer and professional representatives.

The 12 committee members, appointed by Minister McCallum, include professionals, such as medical practitioners and tax lawyers, advocates for the disability community, and persons with disabilities. They are, in alphabetical order: George Archibald, Harry Beatty, Dr. Pierre Beauséjour, Dr. Gary Birch, Lembi Buchanan, Dr. Karen Cohen, Hubert Drouin, Deanna Groetzinger, Dr. Ashok Muzumdar, Eileen Reppenhagen, Dr. Raffath Sayeed, and Peter Weissman.

Please let us know if you have any concerns with the administration of the Disability Tax Credit or other disability related measures. They will be brought forward at the next committee meeting.

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April 26, 2005

Can an individual crusader influence tax policy?

There is no doubt about it!

Barb Marche, who lives with her family in an isolated fishing outpost on the western coast of Newfoundland, has driven the initiative to expand the eligibility for the DTC to children with Type 1 diabetes who receive multiple daily injections. At the present time, only individuals whose diabetes is controlled by an insulin pump are eligible for the tax credit.

Barb believed that the Canada Revenue Agency (CRA) was discriminating against families who could not afford the $6,000 pump and appealed to the Tax Court of Canada. The case was settled out of court in September 2004 because the judge's ruling in Sullivan v. The Queen 2004 supported her position.

When Barb was unable to find sufficient information and support for Canadian families, she set about attempting to fill that gap by creating her own website Diabetes Advocacy. Her main focus was children’s issues but as the site grew, so did the issues important to her and others living with diabetes. Diabetes advocacy has become a full-time commitment taking up much of her time and resources.

Barb was recently selected by the Canadian Diabetes Association's National Awards Committee to receive the Distinguished Achievement Award 2005.

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February 25, 2005

What's so special about the new federal budget?

Lobbying the government pays off. Big time. But it hasn't been easy.

After more than three years of lobbying for disability tax credit reform, government has listened and has included virtually all of the recommendations made by the Technical Advisory Committee on Tax Measures for Persons with Disabilities in its 2005 budget.

The Committee's report, Disability Tax Fairness made 25 policy and administrative recommendations, including three major proposals to clarify the legislation and expand the eligibility criteria for the DTC.

1. Impairments in mental functions
The expression "perceiving, thinking and remembering" in the Income Tax Act will be replaced with the expression "mental functions for everyday living." These include memory, problem-solving, goal-setting, judgment and adaptive functioning.

2. Life-sustaining therapy
Children with juvenile diabetes who receive multiple daily injections of insulin will also qualify for the DTC if the "therapy" exceeds 14 hours per week. Therapy will be defined as the activities required to determine the correct dosage of insulin that needs to be adjusted on a daily basis, including monitoring blood sugar levels. Previously, only children who were receiving their insulin from an insulin infusion pump qualified for the DTC.

3. Cumulative effects of multiple restrictions
Eligibility will be extended to individuals who may not be "markedly restricted" in a single "basic activity of daily living" as defined by the Income Tax Act but have significant restrictions in more than one "basic activity of daily living." If the cumulative effect of their restrictions is equivalent to having a single marked restriction in one "basic activity of daily living," the individual will qualify for the DTC.

"At first something seems impossible, then it becomes improbable, but with enough conviction and support, it finally becomes inevitable."

- Christopher Reeve

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January 2, 2005

Does it pay to share your concerns with your
Member of Parliament?

Absolutely!!!

Members of Parliament are elected by you and others in your riding. They have an ethical and moral obligation to listen to your concerns.

You can ask for an appointment with your MP by calling the local constituency office. You can also write to your MP at the House of Commons, Ottawa, ON K1A OA6. Postage is not required for correspondence sent to the House of Commons. E-mail is usually not an effective way to communitcate with your MP.

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December 15, 2004

Christmas is coming and it’s time to check out
Santa’s bag of goodies.

The report of the Technical Advisory Committee on Tax Measures for Persons with Disabilities was released today. Disability Tax Fairness is the first comprehensive report on the subject and it contains a number of recommendations to help ensure fairness as far eligibility for the DTC to all persons with severe and prolonged mental and physical impairments, including the following:

The Committee recommends that the term “perceiving, thinking and remembering” as a basic activity of daily living in the Income Tax Act be replaced with the term “mental functions necessary for everyday life.”

The Committee recommends that the Canada Revenue Agency state in its explanatory materials and on the application form for the disability tax credit that some impairments in function can result in a marked restriction in a basic activity of daily living, even though these impairments may have signs and symptoms that may be intermittent.

The Committee recommends that the Income Tax Act be amended to provide that persons with a severe and prolonged impairment who are restricted in two or more basic activities of daily living qualify for the disability tax credit if the cumulative effects of the restriction are equivalent to a marked restriction in a single basic activity of daily living all or substantially all of the time.

The Committee recommends that the federal government ensure that the legislative and administrative requirements concerning the present interpretation regarding life-sustaining therapy adequately reflect the time taken for essential preparation, administration of and necessary recovery from life-sustaining therapy as recently interpreted in decision of the Tax Court of Canada.

The Committee recognizes the special circumstances of persons with serious mental impairments, such as bipolar disorder, schizophrenia and acquired brain injuries with its episodic manifestations as well as persons with physical impairments, such as multiple sclerosis and HIV-AIDS who have recurring and unpredictable periods of good health and poor health. The Committee recommends that the Canada Revenue Agency take steps to clarify the eligibility criteria for these individuals.

The Committee believes that the principles in Tax Court decisions should guide the government when developing policy and administrative changes to the eligibility requirements of the DTC. Individuals using a continuous infusion pump already qualify for the DTC if this mode of insulin administration is a medical necessity. However, parents who cannot afford the pump are being discriminated against because of the very narrow interpration of the the Income Tax Act by the Canada Revenue Agency.

Barb Marche has been leading the crusade to help ensure tax fairness for parents of all children with Type 1 diabetes. In August 2004, the Tax Court of Canada recognized that her son Liam, who was receiving multiple daily injections, met the eligibility criteria of the legislation. Her web site Disability Advocacy provides a wealth of information to parents whose applications for the DTC have been denied.

The report also includes recommendations for better tax breaks for persons with disabilities as far as employment and education deductions and increased tax deductions for caregivers and children with disabilities.

Let’s hope that Santa delivers.

In the meantime, ask the Finance Minister, Ralph Goodale to support Santa's cause and ensure that all the recommendations in his bag of goodies are included in the 2005 budget. Also, let your Member of Parliament know about your concerns.

Better yet, send a brief note to them at the House of Commons, Ottawa, ON K1A OA6 asking for tax fairness for all children with Type 1 diabetes, regardless of whether the insulin is given by multiple daily injections or administered by a sub-cutaneous insulin pump.

Handwritten notes are often the most effective and postage is not required when mailing letters to MPs at their House of Commons address.

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July 28, 2004

Has your DTC claim been rejected?

If you have received a letter from the CRA stating that you are not eligible for the DTC, it does not necessarily mean that you don't qualify. If the reason for rejecting the DTC is not clear, you may write to the Disability Unit at your regional Tax Services Office and request clarification of the letter sent to you denying the tax credit.

There a number of reasons why your claim may have been rejected.

1 The health professional may have made an error when completing the form. It is not uncommon for health professionals to check the wrong box by mistake.

2 The health professional may have neglected to check the box indicating whether you are markedly restricted in a basic activity of daily living as it is outlined on the front page of the T2201 form.

3 CRA may have made an error. Check your copy of the T2201 form to make sure that all of the T2201 form is completed correctly and the information supports your claim. The health professional needs to check the "yes" box for only one of the following: vision, walking, speaking, dressing, feeding, elimination or perceiving, think and remembering.

If you believe that an error has been made by the health professional, discuss your concenrs with him or her. You may resubmit the "corrected" T2201 form with a note to the Disability Unit of your regional Tax Services Office. Make sure that the health professional has initialed any changes. If you do not have a copy of the T2201 form, then call the general information number 1 800 959-8281 and ask to have a copy sent to you. If you believe that the error has been made by a CRA staff member, then call the general information number 1 800 959-8281 and ask to have your claim reviewed.

If there are no obvious errors but you disagree with the assessment by CRA than you have the right to appeal the decision.

Appeal Guidelines

For additional information about the appeals process, refer to: Your Appeal Rights Under the Income Tax Act

Notice of Objection

A Notice of Objection must be filed with the Appeals Section of the regional tax office of the CRA within 90 days of the date of the Notice of Assessment disallowing the tax credit. The address will be on the letter that accompanies the Notice of Assessment.

The Notice of Objection is a government form (T400A) that can be obtained from the regional tax office. A letter is also acceptable. Provide the reasons for objection in detail, along with all of the pertinent information with respect to the Objection, including name, address, phone number, Social Insurance Number, taxation year(s) under appeal. Stress the disabling impact of the prolonged and severe impairments with respect to perceiving, thinking and remembering or other activities of daily living. Attach copies of any supporting medical documents. If the DTC was granted in previous years, include this information. Keep copies of all correspondence.

You have a right to access to the following documents in your file:

1. Copies of your tax returns;

2. Copies of all medical and psychological reports relied on by the CRA auditor to determine your assessment;

3. Working papers prepared by the CRA auditor that are relevant to the issues in your dispute;

4. Copies of any supplementary questionnaires completed by the qualified health professional (i.e. medical doctor) when CRA requests additional information for clarification of the effects of your disability on a activity of daily living;

5. Records of any discussions between a CRA staff member such as a medical advisor and the qualified health professional who completed the T2201 form;

6. Records of discussions between the team of CRA staff members who review the additional information in the supplementary questionnaire;

7. Records of discussions between the appeals officer and the CRA auditor regarding your assessment; and

8. Copies of all court decisions and relevant sections of legislation relied on by an auditor to support your assessment.

For further information, please contact the Appeals Division of your regional tax services office. The telephone number is listed in the government section of your telephone book.

This information is also available in the leaflet Resolving Your Dispute - A more open, transparent process or contact your regional Appeals Division for a copy.

If you have concerns about the manner that your claim is being handled by CRA, contact the office of your MP. Provide a copy of the Notice of Objection along with the documentation to the MP's assistant. You will also need to include a letter authorizing your MP to intercede on your behalf.

Please note: interest will begin to accrue on the amount owed to CRA from the date stated in the letter. However, you will not be required to pay the taxes and interest owing until all of the appeal processes have been completed.

The Notice of Objection will be reviewed by an appeals officer and you will receive one of two letters:
a) A Notice of Reassessment allowing the DTC and the amount owing will be withdrawn or,
b) A Notice of Confirmation that CRA has reviewed the Objection and is confirming the original Notice of Assessment.

Notice of Appeal

A Notice of Appeal must be filed with the Tax Court of Canada within 90 days of the date of the Notice of Confirmation from CRA. You can represent yourself in Tax Court or be represented by a lawyer, an agent such as an accountant, a relative or a friend.

The Notice of Appeal can be obtained from the regional tax office. A letter is also acceptable. Provide the reasons in detail to support the Appeal along with all of the pertinent information with respect to the Appeal, including name, address, phone number, Social Insurance Number, taxation year(s) under appeal, the date of the assessment or confirmation (if applicable, attach a copy) and the name of the person if you have someone acting on your behalf.

Request the Informal Procedure. Also request that the $100 Tax Court filing fee be waived if it will cause severe financial hardship. Explain the reason: for example, fixed income, limited financial resources etc. If you pay the filing fee, the Court will reimburse the fee if it allows your appeal in whole or in part.

The original Notice of Appeal and two copies must be submitted to the Tax Court of Canada in your area. Keep copies of all documents.

You will receive a Notice of Hearing with the date and location of your Hearing. If the location of the hearing is a considerable distance from you home, call the Tax Court and ask if the court sits in a city in your province that is more convenient for you. This is an important consideration if you are planning to subpoena the medical doctor who completed the T2201 form. You have a right to request that the location of the Hearing is changed under these circumstances.

The lawyer for the Department of Justice acting on behalf of CRA will also be contacting you. If you have evidence to present in Tax Court, provide copies of all documents to the lawyer prior to the Hearing so that he will have an opportunity to review the evidence. Have an extra set of copies of all the documents available for the judge at the time of the Hearing.

There is no question that appealing to the Tax Court of Canada can be a very intimidating and stressful process. Nevertheless, your chance of winning your case is considerably better than 50/50. And everyone, including the judge will assist in any way they can.

Consent to Judgment

Your case may be settled out of court which means that you don't have to appear before a judge. In this instance, the lawyer from the Department of Justice representing CRA will get in touch with you and offer to settle because, based on the evidence of your case, the judge, in all likelihood, will rule in your favour. This is called a Consent to Judgment. If this is the case, be sure to ask CRA's lawyer to have all of your out-of-pocket expenses reimbursed and have this information documented on the Consent to Judgment in the following manner before you or your lawyer sign the document: "On account of costs the Appellant is entitled to his disbusrsements incurred for preparation of this appeal." (If you have hired a lawyer, make sure that this information is included so that his/her fees will also be reimbursed.)

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May 5, 2004

What do you think of the new T2201 form for the Disability Tax Credit?

The Coalition for Reform of the Disability Tax Credit has posted a brief survey to determine the response to the new T2201 form by persons with disabilities or their representatives as well as health professionals. Please take a few minutes to share your comments with us.

English

French

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February 4, 2004

New Disability Tax Credit Certificate T2201 Form no longer discriminates against persons with serious mental impairments

CCRA has made significant improvements to the T2201 form for the 2003 taxation year as a result of the consultations held last summer with a number of organizations representing persons with disabilities and health professionals. Although the form is considerably longer (8 pages), only pages 7 and 8 need to be completed by the doctor for individuals with mental impairments.

The notes in the T2201 form provide a number of examples of mental functions that are necessary for everyday life such as memory, problem-solving, goal setting, judgment and adaptive functioning (abilities related to self-care, health and safety, social skills and common simple transactions).

There are other changes as well. An individual is markedly restricted in walking if he/she takes a significant amount of time to walk 100 metres (approximately a city block), stopping because of shortness of breath or because of pain.

Note: Individuals, who lost their DTC when CCRA carried out an extensive review of its files in October 2001, are encouraged to re-apply with the new form. Also attach a letter to the T2201 form titled Request for an Adjustment and ask for a reassessment of the taxation years of 2001 and 2002 based on the fact that your doctor has indicated that you became “markedly restricted” in a basic activity of daily living such as walking, speaking, hearing, dressing, feeding, elimination or perceiving, thinking and remembering, during or prior to the 2001 taxation year.

The new T2201 form is also available at your regional tax office.

Individuals or their authorized representatives, can apply for a refund dating back 10 years. To request a refund or a reduction of amounts owing, taxpayers should make the request in writing and include the following information: their name, address and social insurance number, the taxation years involved, all relevant documents to support any claims being made, and an explanation of the specific adjustment they are requesting.

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January 5, 2004

It may not be too late for you to file an objection for the 2001 taxation year.

The Income Tax Act [Section 166.1(7)(a)(b)] allows you for apply for an extension of time to file a Notice of Objection.

In order for a Notice of Objection to be considered valid, it must be filed, based on a (re)assessment or (re)determination, within:
1. 90 days from the mailing of the Notice of (Re)assessment or (Re)determination (keep the mailing envelope for proof of date); or
2. one year from the due date for filing the return (for example, April 30, 2003).

However, you may apply for an extension of time to file an objection by sending a letter to the Chief of Appeals stating the reasons you were unable to file your objection on time for the 2001 taxation year. Your reasons may include the following:
a. a physical or mental illness that prevented you from filing the objection earlier;
b. incorrect information supplied by a clerk answering the General Information telephone line regarding the timelines for filing an objection;
c. a lack of specific information from CCRA regarding the reasons for rejecting the claim to help substantiate the basis for an appeal; or
d. any other reasonable explanation that demonstrates that you were unable to act or to instruct another person to act in the taxpayer's name to file the objection within the required period of time.

The application for an extension of time must be made within one year after the expiration of the time otherwise limited by the Act for filing a Notice of Objection (for example April 30, 2004).

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September 24, 2003

Here is a list of documents that are available to you

In April 1997, the Appeals Renewal Initiative was introduced to improve the dispute resolution service by ensuring that it is as fair and transparent as possible.

You have access to the following documents:

1. Copies of your tax returns;

2. Copies of all medical and psychological reports relied on by the CCRA auditor to determine your assessment;

3. Working papers prepared by the CCRA auditor that are relevant to the issues in your dispute;

4. Copies of any supplementary questionnaires completed by the qualified health professional (i.e. medical doctor) when CCRA requests additional information for clarification of the effects of your disability on a activity of daily living;

5. Records of any discussions between a CCRA staff member such as a medical advisor and the qualified health professional who completed the T2201 form;

6. Records of discussions between the team of CCRA staff members who review the additional information in the supplementary questionnaire;

7. Records of discussions between the appeals officer and the CCRA auditor regarding your assessment; and

8. Copies of all court decisions and relevant sections of legislation relied on by an auditor to support your assessment.

For further information, please contact the Appeals Division of your regional tax services office. The telephone number is listed in the government section of your telephone book.

This information is also available in the leaflet Resolving Your Dispute - A more open, transparent process or contact your regional Appeals Division for a copy.

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June 3, 2003

Here's how to appeal if you have been denied the DTC

When CCRA conducted an audit in October 2001 asking 106,000 Canadians with disabilities to requalify for the DTC, 33,800 persons (or 30%) were denied the tax credit. Approximately 16,000 individuals did not return a completed T2201 form to CCRA. No effort has been made to contact these individuals to determine why they did not respond to the letter.

But it is not too late to respond. A T2201 Form can be filed with CCRA at any time. Make sure that the health professional has the correct date that you became markedly restricted in your "activity of daily living." Also, enclose a letter requesting the DTC for both the 2001 and 2002 taxation years.

If you have been denied the DTC, you may appeal the decision. Approximately 50% of the persons who have filed a Notice of Objection in recent years have had the decision reversed. If you believe that CCRA has made a mistake, here's how to appeal.

Appeal Guidelines

For additional information about the appeals process, refer to: Your Appeal Rights Under the Income Tax Act

Notice of Objection

A Notice of Objection must be filed with the Appeals Section of the regional tax office of the CCRA within 90 days of the date of the Notice of Assessment disallowing the tax credit. The address will be on the letter that accompanies the Notice of Assessment.

The Notice of Objection is a government form (T400A) that can be obtained from the regional tax office. A letter is also acceptable. Provide the reasons for objection in detail, along with all of the pertinent information with respect to the Objection, including name, address, phone number, Social Insurance Number, taxation year(s) under appeal. Stress the disabling impact of the prolonged and severe impairments with respect to perceiving, thinking and remembering or other activities of daily living. Attach copies of any supporting medical documents. If the DTC was granted in previous years, include this information. Keep copies of all correspondence.

If you have concerns about the manner that your claim is being handled by CCRA, contact the office of your MP. Provide a copy of the Notice of Objection along with the documentation to the MP's assistant. You will also need to include a letter authorizing your MP to intercede on your behalf.

Please note: interest will begin to accrue on the amount owed to CCRA from the date stated in the letter. However, you will not be required to pay the taxes and interest owing until all of the appeal processes have been completed.

The Notice of Objection will be reviewed by an appeals officer and you will receive one of two letters:
a) A Notice of Reassessment allowing the DTC and the amount owing will be withdrawn or,
b) A Notice of Confirmation that CCRA has reviewed the Objection and is confirming the original Notice of Assessment.

Notice of Appeal

A Notice of Appeal must be filed with the Tax Court of Canada within 90 days of the date of the Notice of Confirmation from CCRA. You can represent yourself in Tax Court or be represented by a lawyer, an agent such as an accountant, a relative or a friend.

The Notice of Appeal can be obtained from the regional tax office. A letter is also acceptable. Provide the reasons in detail to support the Appeal along with all of the pertinent information with respect to the Appeal, including name, address, phone number, Social Insurance Number, taxation year(s) under appeal, the date of the assessment or confirmation (if applicable, attach a copy) and the name of the person if you have someone acting on your behalf.

Request the Informal Procedure. Also request that the $100 Tax Court filing fee be waived if it will cause severe financial hardship. Explain the reason: for example, fixed income, limited financial resources etc. If you pay the filing fee, the Court will reimburse the fee if it allows your appeal in whole or in part.

The original Notice of Appeal and two copies must be submitted to the Tax Court of Canada in your area. Keep copies of all documents.

You will receive a Notice of Hearing with the date and location of your Hearing. The lawyer for the Department of Justice acting on behalf of CCRA will also be contacting you. If you have evidence to present in Tax Court, provide copies of all documents to the lawyer prior to the Hearing so that he will have an opportunity to review the evidence. Have an extra set of copies of all the documents available for the judge at the time of the Hearing.

There is no question that appealing to the Tax Court of Canada is a very stressful process. Nevertheless, your chance of winning your case is better than 50/50. And everyone, including the judge will assist in any way they can.

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May 9, 2003

The Government has determined that more needs to be done to ensure that the DTC effectively meets its intended purpose.

The Government has listened to the concerns of the community of persons with disabilities, medical professionals and parliamentarians.

On May 8, 2003, The Government of Canada's Response to the parliamentary report, Tax Fairness for Persons with Disabilities, was tabled in the House of Commons. Some of the issues raised in the report have already been addressed in the February 2003 Budget. A number of other concerns need further study and will be examined by the new Technical Advisory Committee on Tax Measures for Persons with Disabilities. The committee has an 18-month mandate to review all tax measures, including the Disability Tax Credit and the Medical Expense Tax Credit and advise the Ministers of Finance and National Revenue on possible legislative and administrative changes.

Further information about committee activities will be posted on this web site as soon as it is available.

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March 7, 2003

Should CCRA clerks be allowed to overrule doctors when assessing eligibility for the DTC?

Bill Casey, PC Critic for the CCRA doesn’t think so. On February 28, 2003, he presented a Private Member’s Bill C-407 in the House. “It is a very simple bill,” said Mr. Casey. “It proposes to change the Income Tax Act to require the government to have a doctor overrule a doctor's report. Currently a disabled person applying for a disability tax credit is required to have a doctor's report. Revenue Canada should be held to the same standard. Only a doctor should ever be able to overrule another doctor's report. That is not the case now.”

According to Mr. Casey, no application for the DTC should be denied without it first being reviewed by a qualified medical professional. “By simply having a qualified medical practitioner review these applications, any room for error and second guessing will be removed. This initiative will give the Department credability. It just makes sense.”

Over the past year, Mr. Casey has continually questioned the Minister of National Revenue regarding clerks overruling input from doctors completing the T2201 forms.

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February 26, 2003

Federal Government Recognizes the Need to Reform the Disability Tax Credit

There was very good news in the federal budget tabled in the House of Commons on February 18, 2003 by Deputy Prime Minister and Minister of Finance, Mr. John Manley.

Clearly, the Government has listened to the disability community, medical professionals and parliamentarians. The Government agrees that more needs to be done to ensure that the DTC effectively meets its intended purpose.

Technical Advisory Committee

The Government will be conducting an evaluation of the DTC to determine whether the tax credit is achieving its policy purpose. In addition, a technical advisory committee will be established to advise the Ministers of Finance and National Revenue on tax measures for persons with disabilities. This committee will include members of organizations representing persons with disabilities, medical practitioners and private sector tax experts.

Over a period of 18 months, the committee will assist the Government in addressing issues identified by the community of persons with disabilities, in a manner that is consistent with the objective of the DTC. Some of the issues that could be examined by the committee include, for example:
~ eligibility for the DTC, particularly for persons who suffer from episodic and mental conditions;
~ list of activities of daily living used to determine eligibility for the credit; and
~ identification of professionals allowed to certify eligibility.

Additional funds allocated to DTC program

The federal budget has set aside $25 million in 2003–04 and $80 million per year starting in 2004–05 to improve assistance for persons with disabilities, drawing on the evaluation of the DTC and the advice of the technical advisory committee. Currently, the federal government provides $400 million annually to about 450,000 Canadians with a severe disability or to those who care for them.

Not everyone is pleased

Member of Parliament, Wendy Lill (Dartmouth, NDP) objects to the revised proposals to clarify the eligibility criteria regarding feeding and dressing challenges. Although the proposed amendments to the Income Tax Act have been modified to protect the integrity of the DTC program, she spoke up in the House on February 25, 2003 stating:

"The budget shows that the Minister (of Finance), his deputy and his department think they are above the will of the House for in the ways and means motion tabled in the House as an appendix to the budget plan last Tuesday are once again increases in restrictions to Section 118 of the Income Tax Act, increases in eligibility restrictions for the disability tax credit in matters of feeding oneself and dressing oneself. What the minister lost on the floor of this place last November he is trying to sneak back in through a technical amendment buried in the budget papers in a vote of confidence. I do not think on this section of the motion he has the confidence from any MP, including government MPs. He has no confidence, but has obvious arrogance. In my opinion, this action shows a contempt of Parliament."

Member of Parliament Mme Madelaine Dalphond-Guiral (Lavel-Centre, Bloc Quebecois) also spoke about her concerns in the House of Commons on February 26, 2003, stating:

"Will this new committee on tax measures for persons with disabilities be able to work miracles? The budget outlines a few of the issues that will be examined by this committee... Here we may see a faint glimmer of hope in terms of the requests and recommendations contained in the unanimous report of the Standing Committee on Human Resources Development and the Status of Persons with Disabilities... we can only talk about a glimmer of hope, nothing more... because the Minister of Finance used the budget to reintroduce his controversial draft legislation from August 30, 2002... Even though the House took a clear stand against any tightening of the eligibility criteria... the Minister turned a deaf ear by reintroducing the proposed amendments."

Three proposals to clarify eligibility for the DTC

The three proposals to clarify the DTC eligibility criteria are: (1) persons markedly restricted in either feeding or dressing themselves will continue to qualify; (2) specification that activity of "feeding oneself" does not include any of the activities of identifying, finding, shopping for or otherwise preparing food, and that individuals who are markedly restricted in their ability to prepare a meal for reasons other than a dietary restriction (e.g., arthritis) will continue to be eligible; and (3) specification that "dressing oneself" does not include the activities of finding, shopping for or otherwise procuring clothes.

Technically, the clarification does not make the current tax legislation more restrictive since the eligibility criteria did not cover the activities of identifying, finding, shopping for or otherwise preparing food for individuals with dietary restrictions or finding, shopping for or otherwise procuring clothes.

In March 2002, the Federal Court of Appeal rendered a decision that would expand the eligibility criteria for the DTC far beyond the policy intent of the government. When Finance proposed amendments to the Act in August 2002, there was considerable concern expressed by the disability community. After extensive consultations, the Department of Finance revised its proposal to ensure that tax assistance continues to be available to those most in need.

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February 11, 2003

How many persons have to commit suicide before the government is willing to recognize that chronic paranoid schizoprhenia is a severely disabling mental illness?

At the present time, CCRA continues to deny the disability tax credit to individuals who have been diagnosed with chronic paranoid schizophrenia.

Although Joyce Wright outlined in detail the disabling impact of her brother's illness in the Notice of Objection sent to CCRA, the tax credit was denied because Ralph McEwen still had the ability to "perceive, think and remember" even though his judgment was impaired, his thinking was delusional and his memory confused.

The fact that Ralph was hospitalized in a psychiatric facility on numerous occasions during the past 10 years was of no consequence. Nor was the notation on the T2201 form by the psychiatrist that Ralph, who is always at risk for another psychotic episode, "needs ongoing support and medication."

In her appeal letter, Joyce wrote: "There is not a moment in the day or night that Ralph is not held hostage by his illness... He is very vulnerable and dependent on me to manage all of his personal affairs as well as for constant support and encourgaement."

Ralph's family continued to care for him as he struggled with his illness, the sense of utter hopelessness, the loneliness and despair, the delusions and hallucinations, until nothing mattered anymore. Certainly not the clerks at CCRA who refused to accept the doctor's assessment of the severity of his illness.

When the pain became unbearable, Ralph decided to take his own life. In the early morning of October 16, 2002, he climbed onto the railing of an overpass in Bramptom and jumped to his death.

Ralph will not be forgotten by CCRA. He still owes the government more than $1,100 because CCRA dened his claim. As far as CCRA was concerned, he no longer met the eiligibility criteria of the Income Tax Act as it has been interpreted by the Revenue Agency in recent years.

Ralph's sister asked CCRA for a reassessment but the appeal's officer said that her hands were tied. There was nothing further she could do.

But the story does not end here. Like others who have contacted me, Joyce Wright is fighting back even if it means going to Tax Court to seek for a just result for her brother. Although she could not stop Ralph from ending his life, Joyce can assure others who are severely impaired by a mental illness that her brother did not die in vain.

If you belive that the unfairness toward individuals with serious mental illnesses like Ralph McEwen MUST stop, please contact your Member of Parliament.

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January 13, 2003

When you appeal the decision by CCRA to deny your DTC claim, who reviews the Notice of Objection?

a. a medical doctor
b. a registered nurse
c. a CCRA clerk with appropriate training in DTC issues
d. none of above

The correct answer is d. none of the above.

Clerks in the Appeals Division of each regional tax office review appeals for all personal tax matters and not just DTC claims. They have no medical credentials and may not be familiar with the terminology used by health professionals.

View the PDF file Completing the Disability Tax Credit Certificate T2201 Form for Individuals with Serious Mental Illnesses with Tips for Physicians and Claimants
if you are having difficulty getting the disability tax credit because of a mental impairment. At the present time, too many persons who meet the eligibility criteria of the Income Tax Act are discriminated against because the question in the T2201 form regarding mental functions is not appropriate for persons with mental illnesses.

You will need to discuss with your doctor the privacy issues of medical documents and whether or not any of them should be released to CCRA.
If your doctor is willing to certify that you or a family member is "markedly restricted" in the ability "to perceive, think and remember" and you are concerned about the disclosure of medical documents, please get in touch with me by clicking on the "Contact info" page. The same caution should be exercised with police reports and any other documents that may not be appropriate for disclosure to a government agency.

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December 29, 2002

Minister Manley announces billions more in tax savings for corporations.

John Manley, Deputy Prime Minister and Minister of Finance, has reaffirmed that the 25% general corporate income tax rate is legislated to decrease to 23% as of January 1, 2003. The estimated tax savings for corporations for the tax year 2002 to 2003 is $1.82 billion and for the tax year 2003 to 2004 is $2.985 billion. Minister Manley justifies the financial windfall for the corporate sector by stating the following: "This advantage will promote investment and jobs in Canada."

Maybe so. However, there has been no word from Finance regarding the erosion of financial support to persons with disabilities by making it increasingly difficult for people with severe and prolonged mental and phsyical impairments to receive the modest Disability Tax Credit.

In fact, the Department of Finance ignored most of the parliamentary committee's recommendations when it responded to its report, Getting it Right for Canadians tabled in the House of Commons on March 21, 2002. Therefore, on December 11, 2002, the Standing Committee on Human Resources Development and the Status of Persons with Disabilities issued a new report, Tax Fairness for Persons with Disabilities and has asked Finance to respond to it in 45 days.

This report is the fifth attempt in 10 years that the parliamentary committee has responded to the outcry of Canadians because the tax system does not treat persons with disabilities fairly. Surely, if our country can pass along tax savings worth billions of dollars to Canadian corporations, it can afford a modest tax credit to offset some of the extraordinary expenses of persons with disabilities. Tax Court judges have consistently ruled that the "provisions (of the Income Tax Act) must be given a humane and compassionate construction."

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December 11, 2002

"The House will not accept the Minister of Finance trying to sneak the same odious restrictions back on the public agenda over the holiday break."

MP Wendy Lill (Dartmouth, NDP)stood up during the House of Commons Debate and stated that members of the NDP caucus were delivering over 1,500 letters from Canadians to the Prime Minister expressing opposition to the government's unfair approach to the Disability Tax Credit.

"These letters also echo the unanimous vote in the House which forced the withdrawal of the Minister of Finance's proposed changes to the DTC. These letters prove that Canadians are watching from all sides of the House and will not accept the Minister of Finance trying to sneak the same odious restrictions back on the public agenda over the holiday break. Five million Canadians with disabilities deserve respect from the government, not harrassing bureaucracies and punitive legislation. The courts, Parliament and disability groups from coast to coast are all calling for more humen and compassionate approaches to the definition of disability under the Income Tax Act. It is time for the Minister of Finance to be Santa and not Grinch this Christmas."

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December 4, 2002

Not everyone with a "severe and prolonged" mental or physical impairment qualifies for the Disability Tax Credit

If Terry Fox were alive today, would he qualify for the Disability Tax Credit?

View the PDF file for the answer to this and other questions regarding eligibility for the DTC.

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November 30, 2002

Minister Manley is taking a "fresh look" at the DTC

John Manley, Deputy Prime Minister and Minister of Finance, has responded to the outcry by Members of Parliament, stakeholders and others regarding the contentious issues surrounding the Disability Tax Credit (DTC). “I have listened closely to what people have said, and I will take a fresh look at how we can best deal with the issues arising from the (The Queen v. Hamilton) court decision," said Minister Manley.

Minister Manley confirmed today that proposals to amend the Income Tax Act released on August 30, 2002 are no longer under consideration and that new consultations are being launched to develop revised proposals. He said that the purpose of the review is not to reduce the Government’s support for persons with disabilities, but rather to ensure that support continues to be provided to those most in need.

Finance officials stated that it was not the intent of the legislators to give the tax credit to individuals who spent an extraordinary amount of time choosing, shopping for, preparing or cooking food. Instead, they proposed that the expression "feeding oneself" be defined for DTC purposes to mean the act of putting food in the mouth or swallowing that food. They also stated that the “proposed amendments… will ensure that eligibility for the DTC is consistent with the policy intent to target the credit to people who are severely restricted in their ability to perform the basic activities of daily living.”

And yet, Finance officials have not been able to provide any proof that they know what the intent of the legislators was when they amended the Tax Act in 1988 to include individuals with disabling impairments other than being blind or confined to bed or a wheelchair. That year, Revenue Canada published the Guidelines to Physicians to assist medical practitioners to determine whether or not their patients met the eligibility criteria. Under the heading, “Activities of Daily Living,” the booklet states that a “person may be eligible (for the tax credit) if that person is unable to perform personal care activities such as preparing, serving and eating meals…”

There is no question that this booklet reflects the original intent of the legislation because of it’s publication date. The Hamilton ruling in February 2002 has broadened the definition of "feeding" to include finding and procuring food.

The Department of Finance is asking for the participation of all interested Canadians in the consultation process regarding the DTC.

Written submissions will be accepted until January 17, 2003.

Five different developments relating to the DTC have recently been the subject of public discussion. They are:
1. Proposals intended to clarify the eligibility criteria for the DTC in response to a recent Federal Court of Appeal decision.
2. The March 2002 report by the Standing Committee on Human Resources Development and the Status of Persons with Disabilities, Getting it Right for Canadians: The Disability Tax Credit.
3. The Government’s August 21, 2002 response to the Standing Committee’s March 2002 report.
4. Recent Canada Customs and Revenue Agency (CCRA) draft revisions to the DTC application form.
5. The recent CCRA review of DTC claims confirming continuing credit eligibility of claims accepted prior to 1996.

The transcript of the committee hearing held on November 21, 2002 with members of the the Standing Committee of Human Resources Development and the Status of Persons with Disabilities and senior officials from CCRA and Finance will provide some insight into some of the difficulties faced by government because of the vote in the House of Commons on November 21, 2002. The House unanimously supported the NDP motion to provide a more humane and compassionate approach to the administration of the DTC.

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November 20, 2002

Canadians with Disabilities Win Vote in the House!

In a unanimous vote on November 20, 2002, all MPs in the House of Commons supported the demand of the disability community for the government to withdraw proposed amendments to the Income Tax Act. The motion was put forward on November 19, 2002 by Alexa McDonough, leader of the NDP, who emphasized the need for a more humane and compassionate approach to the administration of the Disability Tax Credit.

Read the Highlights of the House of Commons debate on November 19, 2002.

Read the complete Hansard Report on the House of Commons debate.

Read The Globe and Mail article.

Read the Press Release, "A Victory for People with Disabilities"

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November 11, 2002

CCRA Backs Off

Minister of National Revenue, Elinor Caplan has responded to political pressure and has instructed CCRA to continue consultations on the development of an improved T2201 form for the disability tax credit. According to CCRA, the biggest challenges in the form's redesign are to satisfy three different perspectives:

• the individuals who benefit fom the DTC;
• the medical practitioners who are required to complete the form;
• the Income Tax Act.

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October 29, 2002

Canadian Alliance Party appoints MP Reed Elley to work on behalf of persons with disabilities

"The Official Opposition believes that that the needs of those who live with serious and long-term disabilities are important," says Reed Elley, MP for Nanaimo-Cowichan, BC. "In this regard, I am pleased to work on behalf of Canadians with disabilities, their families and care-givers, ensuring that their needs are fully addressed."

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October 23, 2002

Math Quiz

CCRA sent letters to 106,000 persons in October 2001. According to CCRA testimony at the Sub-committee hearing given by Mr. David Miller, "this tax benefit had been provided for life" for nearly 200,000 individuals... "and we have not contacted anyone in that group for the last five years, if not 15."

According to the latest statistics from CCRA, 16,000 individuals did not return the T2201 form and therefore are no longer eligible for the tax credit.

As many as 30,000 claims have been rejected because CCRA has determined that they do not meet the eiligibility criteria as it is spelled out in the T2201 form.

Take the Math Quiz posted on Action Alert on October 23, 2002.

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October 22, 2002

Health charities appeal to Members of Parliament

Close to 20 health charities representing more than 6,000,000 Canadians have sent a joint letter to all MPs stating their concerns about CCRA's disregard for their input when drafting a new T2201 form. The draft T2201 form is even more restricitve in some aspects than the previous T2201 form and will deny the tax credit to many persons with disabilities.

The health charities are asking all MPs to contact the Minister of Finance and the Minister of National Revenue to support a joint meeting of all stakeholders to help ensure tax fairness for all Canadians with disabilities.

The health charities are also asking MPs to oppose the proposed amendments to the Income Tax Act by the Department of Finance. If Parliament does not respect the decisions made by the Tax Court of Canada and the Federal Court of Appeal, Canadians will no longer have the assurance that they can seek justice in our courts.

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October 16, 2002

New Democrats Target Prime Minister

HALIFAX - New Democratic Party Leader Alexa McDonough has kicked off a national letter writing campaign to the Prime Minister asking the federal government to halt its attack on Canadians with disabilities.

"Canadians living with disabilities deserve our respect and support," said McDonough.

For more News, visit the History section.

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