Report of the Standing Committee on Human Resources Development and the Status of Persons with Disabilities
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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.
LIST OF RECOMMENDATIONS
1. The Committee recommends that:
(a) The CCRA send a letter to every individual who received the letter dated 19 October 2001 requesting DTC recertification. This correspondence should apologize for the tone of the letter and provide a complete explanation as to why the CCRA requested recertification.
(b) All individuals who obtain recertification as a result of the October 19 letter be compensated upon the production of a receipt for any costs incurred in obtaining the services of a qualified person to complete Form T2201 or for providing the CCRA with any supplementary information.
(c) The CCRA inform all recipients of the October 19 letter that anyone who has been reassessed and refused the DTC can reapply once Form T2201 is redesigned (See Recommendation 5). In the meantime, the CCRA should also advise these individuals of their right to appeal the decision.
2. The Committee recommends that no new requests for re certification be sent to individuals who have claimed the DTC in whole or in part during the period 1986 to 1996 until Form T2201 is redesigned (See Recommendation 5).
3. The Committee recommends that the government immediately amend the Income Tax Act to incorporate judicial decisions. For greater clarity, the Committee recommends that the government:
(a) Add “breathing” to the list of basic activities of daily living in paragraph 118.4(c);
(b) Amend the wording in sub paragraphs 118.4(1)(c)(i) and (ii) to replace “thinking, perceiving and remembering” and “feeding and dressing oneself” by “thinking, perceiving or remembering” and “feeding or dressing oneself.”
4. The Committee recommends that following consultations (See Recommendation 6) the government amend the Income Tax Act to:
(a) Define “markedly restricted” in the context of each of the basic activities of daily living or some combination thereof. The Committee believes that these changes must clarify the meaning of “all or substantially all of the time” to reflect the reality of living with a disability;
(b) Redefine “prolonged” in order to capture individuals who have an impairment that is substantial and recurrent, although not necessarily lasting for a period of 12 continuous months;
(c) Reword subparagraphs 118.4(1)(c)(iii) and (iv) in order to better reflect the everyday situations of individuals with severe speaking and hearing impairments; and
(d) Add “registered nurse” to the list of qualified persons for those residing in a remote part of Canada where access to other medical professionals, especially a medical doctor, is extremely limited.
5. The Committee recommends that all forms used to assess eligibility for the Disability Tax Credit be redesigned. The new Form T2201 should conform to the Income Tax Act, be less prescriptive and afford greater prominence to, and space for, a qualified person’s diagnosis. If necessary, the form should be either expanded or separated into different forms so that it (or they) contain questions related to an individual’s specific disability. A revised form should be referred to the Standing Committee on Human Resources Development and the Status of Persons with Disabilities before 1 December 2002 for consideration and study before it is publicly distributed.
6. The Committee recommends that the CCRA and the Department of Finance take immediate steps to consult widely to develop amendments to the Income Tax Act (see Recommendation 4), a better DTC application process and application form. This consultation should include representatives of organizations concerned with various types of disability, representatives of professional groups of medical practitioners qualified to certify eligibility for the DTC, and the Office for Disability Issues. The consultation exercise should pay particular attention to the need to develop eligibility criteria and an application form that treat mental illness, and cognitive disabilities in an appropriate manner. The CCRA and the Department of Finance should submit a written report to this Standing Committee about the nature and results of its consultative process by 1 December 2002.
7. The Committee recommends that the CCRA and the Department of Finance establish a joint senior level advisory group to conduct ongoing consultations among senior level officials (including the Office for Disability Issues), advocacy groups, representatives of organizations of professional groups of medical practitioners who complete Form T2201, and individuals. This advisory group should deal with ongoing issues dealing with DTC program administration and effectiveness to ensure that the DTC is meeting its stated purpose and objectives.
8. The Committee recommends that beginning with the tax year 2002, the government pay the cost for the services of a medical practitioner who provides the CCRA with any additional information beyond completing Form T2201 when this information results in a DTC claim or appeal being granted. This includes any charge for providing CCRA with supplementary information about an individual’s DTC recertification or a medical appraisal for the purpose of appealing the denial of a DTC claim. For greater clarity, applicants or appellants would not be able to claim these costs for providing any additional information beyond a completed Form T2201 until their DTC claim is approved.
9. The Committee recommends that in order to use health-care resources more efficiently and reduce potential costs for DTC claimants, the recertification process be streamlined to easily identify the instances where an individual’s disability has remained unchanged or worsened.
10. The Committee recommends that the CCRA put in place an information and education strategy and campaign for the 2002 tax year. Prepared in co-operation with the disability community and medical practitioners, this information strategy should:
(a) Educate the general public about the purpose, nature and provisions of the Disability Tax Credit;
(b) Provide information to assist persons qualified to certify individuals’ eligibility for the DTC (particularly those dealing with mental, psychiatric and learning disabilities) to understand the nature of the certification process and the nature of the information required for certification.
(c) Include a detailed guide for tax preparers, financial advisors and their clients that outlines program eligibility criteria and preliminary steps to enable taxpayers to decide whether or not to apply for the credit.
11. The Committee recommends that the CCRA deal appropriately with appeals by:
(a) Including in information materials produced by the CCRA information about the right to appeal for those whose DTC application has been denied. This information should be placed in a prominent position on Form T2201.
(b) Modifying the appeal procedure for those denied the Disability Tax Credit to accommodate persons with disabilities (for example, extending the time limit). These potential modifications should be discussed and agreed to by the advisory group as mentioned in Recommendation 7 of this report.
12. The Committee recommends that by 1 January 2003, any decision by the CCRA to grant or deny an individual’s application for the Disability Tax Credit be made by a qualified person as set out in the Income Tax Act (118.3(1)(a.2)) (currently a medical doctor, optometrist, audiologist, occupational therapist, psychologist or speech therapist).
13. The Committee recommends that when the CCRA rejects an application for the DTC, the Agency provide the claimant with a written explanation setting out the reasons that the application has been refused and setting out the applicant’s rights and procedures for an appeal.
14. The Committee recommends that the CCRA provide all employees who administer the DTC with training regarding the nature of disability, the purpose of the DTC, and the administrative challenges in ensuring fair administration. This training should involve members of the disability community and should pay particular attention to the complexities associated with assessing cognitive and mental disabilities.
15. The Committee recommends that the Department of Finance conduct a comprehensive evaluation of the Disability Tax Credit and that this evaluation be tabled with the Standing Committee on Human Resources Development and the Status of Persons with Disabilities no later than 31 December 2002.
16. The Committee recommends that the government undertake a comprehensive examination of all the federal tax system’s measures to support persons with disabilities. As a basis for public discussion, the government should prepare and release a paper by 31 March 2003 outlining possible options for reform. This paper should specifically include a discussion of combining tax measures (e.g. the Disability Tax Credit and the Medical Expenses Tax Credit), refundability, and a registered savings plan (with a grant component like the RESP) for children with disabilities who may not be able to benefit from higher education but who require financial support to live.
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