Question Period Note: DISABILITY TAX CREDIT - DISABILITY ADVISORY COMMITTEE / REVIEWS

What is the Canada Revenue Agency doing to help Canadians living with disabilities?

• The Canada Revenue Agency (Agency) understands that living with a disability can have significant impacts on individuals and their families.

• The Agency is committed to administering tax measures for persons with disabilities in a fair, transparent, and accessible way.

• The disability tax credit (DTC) is a non-refundable tax credit that provides tax relief to persons with disabilities or their supporting family members.

• In November 2017, the Disability Advisory Committee (DAC) was re instated. On May 24, 2019, it released its first annual report entitled “Enabling Access to DisabilityTtax Measures”, which included 42 recommendations.

• More than half of the recommendations are administrative in nature, the majority of which will be addressed by Spring 2020.

• The Agency is modernizing the DTC application process, improving the client experience, and simplifying the determination of eligibility.

• The Agency completed about 240,000 determinations during the 2018 calendar year, with an approval rate of over 85%.

• Approximately 844,000 Canadians utilized the disability tax credit during the calendar year 2018, providing more than $1.38 billion in tax relief.

The Disability Tax Credit is a non-refundable tax credit that provides tax relief to persons with disabilities or their supporting family members. To apply for the disability amount, an individual or their representative fills out the Disability Tax Credit Certificate and gets a medical practitioner to complete part B and certify the form. The medical practitioner is not asked to provide a diagnosis but simply certify the effects of the impairment(s).
In order to be eligible for the credit, the impairment(s) must have lasted or is expected to last for a continuous period of at least 12 months. Also, the person must meet one of the following criteria:
• be blind;
• be markedly restricted in at least one of the basic activities of daily living;
• be significantly restricted in two or more of the basic activities of daily living (can include a vision impairment); or
• need life-sustaining therapy.
The basic activities of daily living are speaking; hearing; walking; eliminating (bowel and bladder functions); feeding; dressing; and mental functions necessary for everyday life. Feeding oneself does not include identifying, finding, shopping for, or obtaining food.
A therapy is considered life-sustaining if it is needed to support a vital function and if it is needed at least 3 times per week, for an average of at least 14 hours per week.
While most people with disabilities are able to complete their application by themselves or with the help of a friend or a family member, some may seek the assistance of a third party representative, sometimes referred to as promoters. On May 29, 2014, a private member’s bill (C-462) received royal assent. The bill protects people with disabilities from being charged excessive fees by promoters for preparing a disability tax credit form. The Disability Tax Credit Promoters Restrictions Act is administered by the Agency and they are currently developing the regulations to set the maximum fee and defining who should be exempt from the reporting requirements. The regulations are not yet in place.
In November 2017, the Minister announced the re-instatement of the Disability Advisory Committee to provide the Agency with a formalized means of collaborating with various stakeholders. Enhancing the accessibility of the Agency’s services to persons with disabilities is an ongoing effort, and greatly assisted by the Committee’s work.
Co-chaired by Dr. Karen R. Cohen, CEO of the Canadian Psychological Association, and by Frank Vermaeten, CRA Assistant Commissioner, the Committee includes 12 voluntary unpaid members including persons with disabilities, advocates from disability and Indigenous communities, qualified health practitioners, lawyers and tax professionals.

Through the Committee, the Agency is working closely with stakeholders to ensure that it administers all measures for persons with disabilities fairly under the provisions of the Income Tax Act. The Committee advises the Agency on the needs and expectations of persons living with disabilities and reviews and provides feedback on the Agency’s administrative practices.
In May 2019, the Committee published their first annual report, Enabling access to disability tax measures, which includes 42 recommendations:
• Half are policy recommendations, almost all involving legislation.
• The other half are almost purely administrative, primarily under Agency purview.
• The Agency is already working to address many of the administrative recommendations.
Additional Reports:
On June 27, 2018, the Senate Committee on Social Affairs, Science and Technology (SOCI) released a report entitled “Breaking Down Barriers: A critical analysis of the Disability Tax Credit and the Registered Disability Savings Plan.” The report included 16 recommendations aimed at improving Disability Tax Credit and the Registered Disability Savings programs.
On March 22 2019, the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) released a report entitled “Taking Action: Improving the Lives of Canadians Living with Episodic Disabilities” . This report included 11 recommendations aimed at supporting the broader disability community.

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