John Manley introduces amendments Ottawa, August 30, 2002 that will restrict disability tax credit

John Manley, then Minister of Finance, Canada (photo CBC)

Editor – Part of a series reporting the ten years of harassment of Canadians with disabilities by Canada Revenue Agency. Archived story – August 30, 2002 John Manley introduced amendments that would restrict the ability of Canadians with disabilities to claim the $1,100 Disability Tax Credit. Several court decisions had allowed the DTC in cases of cumulative disabling conditions that Finance wanted to cut off.

Manley’s amendment, drafted by the Department of Finance, were denounced by a unanimous vote of the House of Commons, minus Cabinet and the Prime Minister, on November 22, 2002 Canada Revenue Agency censured in House of Commons.

John Manley, Deputy Prime Minister and Minister of Finance, announced today proposed amendments to the Income Tax Act that will clarify eligibility for the disability tax credit

The proposed amendments respond to a recent court decision and 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.

The first amendment ensures that individuals would not be eligible for the DTC merely on the basis of a dietary restriction that results in an extraordinary amount of time being spent on choosing, shopping for, preparing or cooking food. Specifically, it proposes that the expression “feeding oneself” be defined for DTC purposes to mean the act of putting food in the mouth or swallowing that food.

The second amendment, similarly, will define the expression “dressing oneself” for DTC purposes to mean the act of putting on and removing one’s clothes. 

A third amendment corrects a technical anomaly and ensures that individuals severely restricted either in the activity of feeding oneself or dressing oneself will continue to qualify for the DTC.

The DTC recognizes that people with severe and prolonged impairments incur disability-related expenses that reduce their ability to pay tax. The credit reduces an individual’s federal income tax by up to almost $1,000 per year. In total, the DTC provides about $390 million a year in federal tax assistance.

The proposed changes will be effective for the 2002 and subsequent taxation years. Further details are provided in the attached draft legislation and explanatory notes.

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