Dispelling the myths about controversial Disability Tax Credit

Posted on January 21, 2011 by Byline

Canada’s Disability Tax Credit what it is and is not

Disability Tax Credit worth $1,079 in non-refundable federal tax benefit

Editor – we reprint the portion of the Caledon Institute Report which explains what the DTC is and is not. A Basic Income Plan for Canadians with Severe Disabilities

The Disability Tax Credit is geared to Canadians who, due to severe and prolonged impairments in physical or mental functions, are markedly restricted in their ability to perform basic activities of living.

The Disability Tax Credit provides income tax relief to help cushion the burden of disability costs.

The value of the DTC as a federal tax savings was $1,079 in 1979. The ‘face amount’ of the Disability Tax Credit was $7,196; however, this is misleading because the Disability Tax Credit only worth 15% of that.

The cost to the federal treasury of the Disability Tax Credit was an estimated $415 million by the Department of Finance Canada.

In 2008, 889,600 Canadians qualified for the Disability Tax Credit. Some 977,080 adults under 65 reported severe or very severe disabilities in 2006. So Disability Tax Credit recipients represented only around 30 to 40 percent of the potential target group. Continue reading →

Wife of Canadian with disability wins historic tax case against CRA

Posted on January 20, 2011 by Stephen Pate

Disability Tax Credit Certificate case won by Lembi Buchanan in 2001 had reverberations across Canada

Lembi Buchanan (right) receives Access Award for Disability Issues from Toronto Councillor Pam McConnell (left) (photo Toronto.ca)

Archive Nov 2001 Part of a series reporting the ten years of harassment of Canadians with disabilities by Canada Revenue Agency- Lembi Buchanan represented her husband in a landmark case at the Federal Tax Court when CRA refused his Disability Tax Credit. Buchanan won in court and became an important advocate for people with disabilities. She served on the “Technical Advisory Committee on Tax Treatment for Persons with Disabilities which led to a major overhaul of the eligibility criteria for the DTC, especially for persons with mental impairments.”

by Lembi Buchanan, from ARCH

When is a disability not a disability?

The bureaucrats at Canada Customs and Revenue Agency (“CCRA”) believe that they know exactly where to draw the line. Instead of relying on the medical profession for an accurate and fair assessment of the severity of each patient’s disability according to the eligibility criteria in the Income Tax Act, CCRA has revised the Disability Tax Credit (“DTC”) Certificate, form T2201, to simplify the process. What could be easier for the physician than checking off a few “yes” and “no” boxes?

Of course, nothing in life is quite that simple. The current DTC form has created a hurdle that is virtually impossible for every individual disabled by a severe mental impairment to surmount because the federal government has made two assumptions that are not true:

1. individuals with a severe and prolonged mental impairment cannot think, perceive or remember, and

2. individuals with a severe and prolonged mental impairment cannot manage or initiate personal care without constant supervision.

The recent court case of Buchanan v. Her Majesty the Queen underlines the urgent need for a full review the DTC Certificate because it discriminates against individuals with severe and prolonged mental impairments. Continue reading →

Mass Audit of the Disability Tax Credit

Posted on January 20, 2011 by Byline

Archive – ARCH reports Canada Customs and Revenue Agency targeting Canadians with disabilities

Part of a series reporting the ten years of harassment of Canadians with disabilities by Canada Revenue Agency. In November 2001, ARCH sounded the alarm that the tax man was trying to eliminate the Disability Tax Credit (DTC) for hundreds of thousands of Canadians with taxpayers. We re-print the story in 2011 since it appears CRA are starting another campaign to restrict the DTC. Continue reading →

Disability Tax Credit Clarification Proposed by Finance

Posted on January 12, 2011 by Stephen Pate

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. Continue reading →

CCD raises cry about tax changes

Posted on January 12, 2011 by Byline

In September 2001, Council of Canadians with Disabilities raised the alarm about CCRA changes

Editor – Part of a series reporting the ten years of harassment of Canadians with disabilities by Canada Revenue Agency. This archived story from the CCD is dated 2001. It is the first public acknowledgment of the income tax problems to come as Canada Customs and Revenue tries to remove the DTC from thousands of Canadians with disabilities. Continue reading →

Getting it Right for Canadians: The Disability Tax Credit

Posted on January 12, 2011 by Byline

Report of the Standing Committee on Human Resources Development and the Status of Persons with Disabilities

Picture House of Commons

Part of a series reporting the ten years of harassment of Canadians with disabilities by Canada Revenue Agency. Archived report from March 31, 2002. Chaired by MP Judi Longfield

Editor – We are re-printing this report as it directly relates to the Motion in the House Of Commons. We have saved the report from that period. To the best of our knowledge the report is verbatim. Continue reading →

Canada Revenue Agency censured in House of Commons

Posted on January 12, 2011 by Stephen Pate

Government and Opposition Members Defeat Changes to Disability Tax Credit

Alexa McDonough Canadian NDP Leader (1995 - 2003) Reuters photo

By Stephen Pate, Polio PEI, November 21, 2002 (from our archives)

In an unprecedented vote Wednesday in the House of Commons, government MP’s supported an NDP Motion and defeated the government’s changes to the Disability Tax Credit.

The Liberal Government’s Department of Finance introduced draft legislation on August 30, 2002 intended to introduce restrictions in the ability of Canadian taxpayers with disabilities to obtain tax relief.

The Disability Tax Credit provides approximately $1,000 of tax savings to 400,000 severely disabled Canadians.

On Tuesday, November 19^th, 2002, NDP leader Alexa McDonough introduced an opposition Motion that was debated for most of that day. Continue reading →

CRA and CBC join attack on disability benefit company

Posted on January 12, 2011 by Stephen Pate

Printing half the story, CBC slams National Benefit Authority for helping Canadians with disabilities

CBC story attacks NBA who help Canadians with disabilities get their tax deductions (photo CBC)

The CBC is attacking a company that helps people with disabilities prepare their tax returns properly.

The story is rife with half-truths, innuendo and bias. CBC does not put the story in context of the 1 million Canadians who qualify for the Disability Tax Credit but don’t get it. Continue reading →

Man with disability raises $600K as street beggar

Posted on January 5, 2011 by Stephen Pate

Would Jesus or Charles Dickens notice the difference in how people with disabilities are utilized in Canada today

His name is Muki Baum, he has cerebral palsy, he's deaf and can barely speak. Yet for almost 20 years he's been fundraising outside Holt Renfrew for people with disabilities. His tally to date is a staggering $600,000. VINCE TALOTTA/TORONTO STAR

Muki Baum is a man severely disabled by Cerebral Palsy who has raised $600,000 begging on the streets of Toronto outside posh stores like Holt Renfrew.

Donna Thompson, wife of Canada’s High Commissioner to the UK, argues in The Four Walls of My Freedom that we are not valuing people like Muki Baum.

The Toronto Star reports Mr. Baum raised this money day-after-day for charities like Wheels in Motion and the March of Dimes. He has done it for 20 years.

It’s a wonderful story of triumph over adversity and personal sacrifice.

It’s also the saddest commentary on how little Canadian society values people with disabilities.

Mr. Baum is not alone.

Many Canadians with moderate to severe disabilities are not employed and resort to street begging to survive.

Mr. Baum is not limited in intelligence but his appearance, mobility and verbal limitations make him fit for the lowest level of activity.

Continue reading →

Miracle in the Gulf of St. Lawrence

Posted on December 22, 2010 by Byline

Yes Alberta, there is a Santa Claus

Santa Party, St. Albert, Alberta (photo St. Albert Santasite)

By Paul MacNeill, Eastern Graphic – The jolly old man looked over the rim of his glasses, sipped lightly from his cup of hot tea and pondered the question from the little girl.

“Is there really a Santa Claus?” she had asked meekly.

It was the type of question that requires a deft touch.

“Yes, Alberta, there really is a Santa Claus.”

She smiled and reached out her hand. Grasping it lightly he began to tell the real story of Santa Claus.

Way back in the late 1960s, Prince Edward Island was an economic basket case, he said. Our million acres were dotted with small family farms and vibrant rural communities. The Elves (also known as The Suits) decided this was inefficient so they set about magically changing the landscape. They promised prosperity for all. Continue reading →

RDSP fails to help Canadians with disabilities

Posted on December 22, 2010 by Stephen Pate

Canadians not taking advantage of disability savings

Prime Minister Harper, RDSP benefits few Canadians except ultra rich

The Registered Disability Savings Plan, a gem in the crown of the Harper government’s social policies, has been a failure in helping Canadians with Disabilities.

If Prime Minister Harper wanted to help Canadians with disabilities he could implement many of the well researched proposals to end poverty and provide disability supports. Complicated schemes like the RDSP that target the ultra rich are of little value.

Recent survey sponsored by the Bank of Montreal shows only 5% of Canadians with disabilities have a tax sheltered savings plan for people with disabilities.

RDSP’s are focused on the upper income parents of children with disabilities who have disposable income available for savings after their own RRSP savings.

Most Canadians with a disabled dependent are spending their money on disability supports and medical costs. 95% of them don’t have any additional money for RDSP savings.

A recent Caledon study found a high percentage of Canadians with disabilities are living in poverty. Anyone living on the $9,000 annual income from CP Disability is not a potential saver. Continue reading →