2023 Fourth Annual Report of the Disability Advisory Committee

Table of Contents

• Committee Members
• Authors
• Acknowledgements
• Executive Summary
• 1. Introduction and Background
  • 1.1. Disability in Canada
  • 1.2. The Disability Tax Credit Explained
• 2. Disability Advisory Committee Discussions and Recommendations (2022 to 2023)
  • 2.1. Discussions and Recommendations in Relation to Core, Cross-Cutting Themes
    • 2.1.1. Definition and Approach to Disability
    • 2.1.2. Data
  • 2.2. Discussions and Recommendations in relation to the DTC Access Roadmap
    • 2.2.1. Awareness
    • 2.2.2. Eligibility
    • 2.2.3. Procedure for Applying
    • 2.2.4. Objections and Appeals
    • 2.2.5. After Receiving the DTC
• 3. Conclusion
• References
• Appendix A: The Disability Tax Credit Explained
• Appendix B: The Disability Advisory Committee Terms of Reference
• Appendix C: Report card
• Appendix D: The ASE Community Foundation for Black Communities with Disabilities DAC Data feedback
• Appendix E: Overview of non-participation in the DTC in Quebec, reflections and recommendations
• Appendix F: Additional information on data
• Appendix G: Committee Members
• Appendix H: Federal Measures for Persons with Disabilities
• Appendix I: Disability Measures Linked to Disability Tax Credit Eligibility
• Appendix J: Form T2201, Disability Tax Credit Certificate
• Appendix K: Resources on Language and Disability
• Appendix L: Factsheet – Indigenous Peoples
• Appendix M: Updated Tables for the DTC Statistical Publication - PDF versions

Committee Members

The Disability Advisory Committee is made up of 12 members including two co-chairs. The Committee includes professionals from various fields, such as health professionals, lawyers, accountants, and tax professionals, as well as advocates for the disability community, representatives of Indigenous communities, and persons with disabilities.

The Committee is composed of voluntary members, including persons with disabilities, health providers and professionals from a variety of fields, such as tax professionals and lawyers. The Committee is currently co-chaired by Sharon McCarry, Founder and Executive Director, La Fondation Place Coco, and by Gillian Pranke, Assistant Commissioner, Assessment, Benefit, and Service Branch, Canada Revenue Agency (CRA). Jonathan Lai serves as vice-chair. The complete membership of the committee can be found in Appendix B.

Authors

Prepared for the Disability Advisory Committee by members of the Disability Policy Research Program: Brittany Finlay, Christiane Roth, Stephanie Chipeur, Ken Fyie and Jennifer Zwicker

Acknowledgements

The Committee acknowledges the following individuals who participated in its consultations to inform the development of this report: Laura Fregeau, Liam Bienstock, Parth Shah, and Chelsea Bell Eady.

Executive Summary

The Disability Advisory Committee (DAC) advises the Minister of National Revenue and the Canada Revenue Agency (CRA) on how the Agency can improve the way it administers and interprets tax measures for Canadians with disabilities. This report delivered by the DAC explores the challenges and opportunities surrounding the disability tax credit (DTC) in Canada, a crucial federal tax credit that assists individuals with disabilities and their supporting family members. The report begins by underlining the significance of this issue, highlighting that one in five Canadians aged 15 and older, approximately 6.2 million people, have a disability according to the 2017 Canadian Survey on Disability. Demographic information highlights the diverse needs of the population that must be considered.

The DAC highlights the important need for more data to help inform design and implementation of the DTC program and the need to shift from the medical model to the biopsychosocial model of disability, emphasizing the importance of considering biological, psychological, and social factors when understanding an individual's medical condition. This shift aligns with the United Nations Convention on the Rights of Persons with Disabilities and underscores the need to remove societal barriers to enable full participation for people with disabilities.

This report describes the DTC and its critical role in supporting individuals with severe disabilities in mitigating additional costs that act as barriers to participation in society. The multi-step process to obtain the DTC is detailed, with a focus on identifying potential barriers at each stage.

The DAC has produced several recommendations to address issues with the process to access the DTC. The report presents 26 recommendations aimed at enhancing the DTC program and addressing issues of eligibility, accessibility, and outreach. These recommendations cover a wide range of areas, from reframing the definition of disability to tracking user feedback for the online DTC application, improving public education, making the DTC refundable, and enhancing healthcare provider support. The 26 recommendations are described, in alignment with the process for applying for and accessing the DTC.

One significant issue highlighted is that there is a gap in data capture and analysis when persons with disabilities do not apply for the DTC for various reasons. An exploratory analysis using linked data from the 2017 Canadian Survey on Disability and CRA tax data reveals that only a fraction of those eligible for the DTC successfully complete the application process, mainly due to challenges starting the application and filing an income tax and benefit return.

The DAC acknowledges the need for co-operation among government agencies and departments, at the federal, provincial, and territorial levels, to effectively improve tax measures and support services for individuals with disabilities. The report underscores the importance of co-designing policies and services with underserved groups and those with expertise in this area. This report highlights the pressing need to address the challenges faced by Canadians with disabilities in accessing the DTC and related services. The recommendations put forth seek to promote inclusivity, equity, and improved quality of life for individuals living with disabilities in Canada.

1. Introduction and Background

1.1. Disability in Canada

Persons with disabilities represent a diverse portion of the Canadian population with one in five people in Canada aged 15 years and older (an estimated 6.2 million people) having a disability (2017 Canadian Survey on Disability). There are several key demographic patterns among Canadians with disabilities, including:

• the prevalence of disability increases with age, from 13% among youth aged 15 to 24 years, to 20% among working age adults aged 25 to 64, and to 47% among persons aged 75 years and over
• of the 6.2 million Canadians aged 15 years and over with a disability, 37% were classified as having a mild disability; 20%, a moderate disability; 21%, a severe disability; and 22%, a very severe disability
• women have higher rates of disability than men. The prevalence of disability is 24% for women, versus 20% for men for those aged 15 years and over
• almost one in three Indigenous people have a disability, a much higher rate than that of the general population

Today, most academic and policy discussions about disability address the importance and desire to shift from the medical to the biopsychosocial model of disability. The medical model, which characterizes illness and loss of function for persons with disability in categorical or diagnostic terms, is still predominant in health and social systems in Canada. While this framing may be helpful for clinical settings, the disability community largely rejects the medical model in favor of the biopsychosocial model. The biopsychosocial model, first conceptualized by George Engel in 1977, suggests that there are multiple factors to consider when understanding an individual’s medical condition:

• biological factors, which encapsulate the physiological pathology of a certain condition
• psychological factors, which encapsulate the emotions and behaviors associated with a certain condition
• social factors, which encapsulate socioeconomic and cultural factors experienced by the individual, such as family circumstances and socioeconomic status, among others

The biopsychosocial model aligns with the United Nations Convention on the Rights of Persons with Disabilities and focuses on addressing barriers that may prevent or limit one’s full participation in society. This model also promotes the idea that adapting social and physical environments to accommodate people with a range of functional abilities improves quality of life and opportunity for people with and without impairments.

This report provides information on the DTC and the process to access it. Population data is presented to provide context on usage of the DTC among persons with disabilities in Canada. The report then details 26 recommendations from the Committee, highlighting the issues at hand, progress to date and next steps. A report card describes these recommendations within the context of progress on past Committee reports.

1.2. The Disability Tax Credit Explained

Introduction

The DTC is a non-refundable federal tax credit that helps people with disabilities, or their supporting family member, reduce the amount of income tax they may have to pay. To be eligible for the DTC, applicants must have a severe or prolonged impairment in physical/or mental function impeding their ability to conduct activities of daily living.

The primary support offered through the Canada Revenue Agency (CRA) to persons with disabilities is the DTC. The DTC is designed as a horizontal tax equity instrument to provide tax relief for the additional costs that persons with severe disabilities may face as barriers to participation in society (Canada, 2017; Disability Advisory Committee, 2019; Dunn & Zwicker, 2018). The process to receive the DTC involves multiple steps, as depicted in Figure 1 and explained in detail in Appendix A. From being aware that the DTC exists, through applying for and receiving the DTC certificate, to finally receiving the DTC and potentially benefits from other programs, each step presents a potential barrier to applicants. These steps, and recommendations to improve the steps, are among those presented later in this report.

Figure 1: Roadmap for persons with disabilities to receive the DTC

Accessible description of Figure 1: For persons with severe or very severe disabilities as defined by the Canadian Survey on Disability, 25% apply for a Disability Tax Credit certificate. 96% of those are accepted, and they receive the certificate. Subsequently, 91% file taxes, and of those, 78% receive the disability tax credit for themselves. Having an accepted certificate and/or filing taxes serve as gateway to other disability support services.

The CRA has provided public numbers that detail who is receiving the DTC and some demographic information (province, age, gender, duration, marital status) on those who receive a DTC certificate. However, there are disabled individuals who do not apply for the DTC certificate for various reasons. This population is not captured in the CRA data and has not been detailed thoroughly in previous reports.

Using data linking survey responses from the 2017 Canadian Survey on Disability (CSD) with CRA tax data, an exploratory analysis describes who is and who is not applying for the DTC certificate, and who is claiming the DTC (details on data in Appendix F). Following the roadmap, this analysis shows one barrier is beginning a DTC application. In 2017, only 25% of those identified as having a severe or very severe disability in the CSD applied for a DTC certificate. Another barrier arises with filing an income tax and benefit return: For those who did apply, only 91% filed a return in 2017. Filing a return is critical to receiving the DTC.

The CRA accepted, either at first or through subsequent attempts, most applications: 96% for those either severely or very severely disabled were eventually accepted. Of those that are accepted though, only 78% received the DTC for themselves. Some individuals may transfer their credit to spouses or other supporting family members.

When all severity levels are combined, only 11% of persons with disabilities completed the roadmap: applied for the DTC certificate, received the DTC certificate, filed a return, and subsequently claimed the DTC for themselves. Focused on those most severely disabled, the proportion receiving a certificate and claiming the DTC for themselves is 25%. These results are summarized in Table 1 below.

Table 1: Summary of CSD and CRA Linked Data

Population: 2017 CSD disabled	Total persons with disabilities	Severity level of the persons with disabilities population	Severity level of the persons with disabilities population	Severity level of the persons with disabilities population	Severity level of the persons with disabilities population
-	-	Mild	Moderate	Severe	Very Severe
% filing a tax return in 2017	93%	94%	94%	92%	89%
% applying for a DTC certificate in 2017	14%	5%	10%	16%	33%
% rejected for a DTC certificate	5%	5%	7%	6%	4%
% of persons with disabilities receiving DTC in 2017	11%	3%	7%	11%	25%
% of those with a DTC certificate receiving the DTC in 2017	77%	66%	80%	77%	79%

The low application rates, as well as issues surrounding rejections and not receiving the DTC as a tax credit, will be explored in the subsequent section of this report.

2. Disability Advisory Committee Discussions and Recommendations (2022 to 2023)

The Committee provides advice to the minister of national revenue and the CRA on improving the administration and interpretation of tax measures for Canadians living with disabilities. A detailed description of the Committee’s mandate and membership is provided in Appendix B. Since its establishment in November 2017, the DAC has produced four reports. A report card on the achievements and progress of previous recommendations is provided in Appendix C.

This fourth report summarizes the DAC’s work, the progress of previous recommendations, and provides 26 additional recommendations. Recommendations are categorized based on the following:

• core and cross-cutting themes, including the definition of disability, data, populations of special consideration, regional considerations, co-design and accessibility
• issues related to accessing the DTC, including awareness, eligibility, application, appeals and gateway to other benefits

2.1. Discussions and Recommendations in Relation to Core, Cross-Cutting Themes

2.1.1. Definition and Approach to Disability

Current Issue

The current definition and approach to disability (as outlined in the Income Tax Act) used by the federal government to determine eligibility for the DTC and other disability benefits lacks inclusivity. There is a need to consider the biopsychosocial aspects of disability when determining who is eligible for disability benefits.

Progress to Date

In the 2022 report, the DAC noted that the DTC itself illustrates the conflict of the social and medical models of disability. Eligibility criteria are based on function, all or substantially all of the time. Applicants and their close contacts have a first-hand understanding of their function all or substantially all of the time, but DTC applications still rely on the judgment of a health provider. The DAC has pointed out that health providers are not with the applicants all or substantially all of the time. Steps have been taken to encourage medical practitioners to consult with their patients and provide information shared by their patient. The clarification letters advise medical practitioners to consult with their patients in order to answer the questions posed. This practice is also reinforced by medical advisors when speaking to medical practitioners. These are promising steps but there remains a need for more progress on this issue.

Next Steps and Recommendations

In their discussions over the past year, the DAC has highlighted the importance of integrating aspects of societal participation into the definition of disability in recognition of the broad scope of support that persons with disabilities require on a daily basis. This includes considering the applicant’s capacity to engage in essential acts of daily living, such as dressing, self-care, and medication management, among others.

Committee members and professionals consulted as part of the DAC’s work advocate for a shift towards a biopsychosocial model of disability. The DAC advocates for this shift, as it aligns with the commitments of the United Nations Convention on the Rights of Persons with Disabilities and allows for a more holistic view of disability beyond a medical diagnosis, while continuing to retain biological aspects of disability that are not purely social in nature.

2.1.2. Data

Client Experience Survey

Current Issue

There is little information on whether clients (people with disabilities, their families or caregivers, or others who are assisting in completing DTC applications) are satisfied with, and getting the necessary information to successfully complete, the application process. A DTC client experience survey exists, but it has only a small number of responses relative to the number of DTC applicants and recipients, dramatically affecting the reliability and usability of the data.

Progress to Date

Based on a DAC recommendation in 2019, the CRA developed the client experience survey. Subsequent recommendations have been made in previous DAC reports to improve questions in the survey, to improve completion rates, and to make the survey more accessible. For example, the Committee asked the CRA to include a question in the survey about access to health providers in response to applicant concerns. The DAC wanted to know more about the access problems that DTC recipients face. The CRA modified the questions in the survey, based on input from Committee members. As of June 2023, the following additional changes are being implemented by the CRA to improve the survey:

• to improve the survey’s content, a careful analysis of each question, and the type of data it will yield, is underway
• to reduce the overall number of survey questions, the CRA is in the process of building a more dynamic and accessible survey, where the questions adapt to the answers provided
• a new introduction to the survey is being developed to encourage survey completion. The addition of a survey progress bar is also being investigated
• a review of the language level used and e-reader capabilities is being completed to make sure the survey meets the accessibility standards for persons with disabilities
• options to make the survey more readily available, such as through a direct online link, are being explored
• a review of various promotional strategies to raise awareness, to encourage participation and to remind applicants about the survey is in progress. Using existing tools such as CRA navigators and social media is likely. However, new promotional tactics are being explored as well

Next Steps and Recommendations

The DAC commends recognition of the need to make substantial progress on the client experience survey. One of the primary concerns of the DAC moving forward is the consistent, relatively low uptake and completion rate of the survey among those applying for the DTC. The length of the survey and its non-inclusive language are two areas that have been highlighted and have been noted by the CRA as areas where improvements are underway. The survey has the potential to provide valuable information from the perspective of applicants, which can ultimately improve the DTC application process. As such, increasing uptake and completion of the survey is an important priority moving forward. Considering the recent launch of the digital DTC application, the survey could be an important means to gather information about the user experience with this new process. The DAC suggests the CRA consider the following:

• include the link to the survey on My Account or have the survey embedded in digital tax forms
• promote the survey to those who have not completed a DTC application but may be eligible, including on web pages on Canada.ca
• consult persons with lived experience to determine ways to make the survey more accessible

While it is important to capture perspectives from the individuals applying for and receiving the DTC, the DAC recommends expanding the survey to include perspectives from practitioners that fill out portions of the DTC application. This would allow the CRA to learn more about the process of applying for the DTC from multiple perspectives to improve the application process for all users.

Data Strategy

Current Issue

Information regarding DTC application processes is minimal, such as the percentage of those with a disability applying, the sociodemographic characteristics of those who apply, and what characteristics in the application or among applicants are associated with rejections.

Progress to Date

From 2011 to 2021, the CRA published DTC statistics with an increased amount of data based on DAC recommendations and requests. These statistics include the number of individuals with an accepted certificate and sociodemographic characteristics of these individuals, as well as the number of individual applications that are accepted or rejected. Applicant satisfaction data with the process has been collected through the client experience surveys as noted above in an effort to get further characteristics of applicants with accepted or rejected applications.

The DAC has previously requested that the CRA provide and make publicly available relevant data on the DTC, including number of applications, approvals, rejections, and appeals; durations of eligibility by function; and a demographic profile of current beneficiaries by age and gender. These data are, in part, available on the CRA webpage detailing Disability Tax Credit statistics.

The DAC has also made the following data requests:

• Percent of applicants relative to those eligible – Sociodemographic information such as age, gender, region and ethnicity, describing how effectively the DTC is reaching those it is designed to support
• Temporary/Permanent status – There is generally a higher rate of temporary DTC approvals for the Atlantic region. However, the DAC was unable to ascertain from the numbers whether this imbalance was the result of the functions for which applicants were claiming
• Reapplications – There are a large number of middle-age applicants who are expected to reapply for the DTC. More information on these cases is required
• Potential recipients – What proportion of the caseload applies for the DTC only to help offset their costs; what proportion applies only to gain access to other disability-related benefits; what proportion does both. It is important to have some indication of the number of claimants benefiting from a tax reduction, compared to the number of claimants who do not benefit from a tax reduction

The CRA has not provided this information, but it continues to discuss these requests with relevant teams. In some cases, the CRA takes the position that it cannot gather this information from its current data.

Next Steps and Recommendations

Current data summaries prepared by the CRA have led to insights about DTC recipients and potential areas for improvements to the DTC process. To further improve the process – For instance, to determine whether specific communities or populations are seeing worse rates of DTC certificate acceptances, or higher rates of DTC utilization, further data summaries should be prepared where data is available and collected by the CRA.

The DAC has also consistently recommended that the CRA (in partnership with the Department of Finance Canada, Statistics Canada, and the disability community) undertake a study of the current data needs regarding the DTC and identify appropriate new ways of tracking necessary DTC information, including the estimated number of Canadians who potentially would be eligible for the DTC but cannot benefit because of its non-refundable status. No such study has been initiated by the CRA.

As the DTC is the gateway to other disability supports provided by other ministries, data and findings from the CRA can and should be incorporated into cross-ministerial analyses. To date, these sources are siloed from each other, and a holistic view of accessibility to governmental supports for disability cannot be provided. To start, a data strategy detailing what is available, and what can be analyzed from all ministries, including the CRA, should be developed. Missing data can be noted and linking strategies can then be developed to aggregate the information. Tracking this information will allow the CRA to highlight service accessibility, as well as to note how and with whom the DTC and related benefits are not being utilized.

Populations of Special Consideration

Current Issue

Indigenous Peoples, Black Canadians, and other racialized groups with disabilities are more likely to experience barriers to accessing disability services and supports to which they are entitled.

Progress to Date

In previous reports, the DAC has focused on the barriers experienced by Indigenous Peoples with disabilities but has not addressed barriers experienced by Black and other racialized people with disabilities.

In response to DAC recommendations about issues specific to Indigenous Peoples, the CRA has taken the following actions:

• increased its investment in its Community Volunteer Income Tax Program, particularly among organizations serving Indigenous Peoples
• hired Indigenous staff and provided CRA staff with Indigenous cultural sensitivity training, though specific numbers have not been provided
• reorganized its operations by creating the Disability, Indigenous, and Benefits Outreach Services Directorate
• plans to hire Indigenous navigators to complement the services provided by the CRA navigators who assist DTC applicants with complex cases. Of note, the CRA has yet to report on whether this has occurred
• working with Indigenous Services Canada and the Indigenous Services Branch at ESDC on a tool to encourage Indigenous Peoples to file an income tax and benefit return, though the CRA has yet to report on whether this has occurred

The DAC has not received a response from the CRA about its recommendations for the following:

• that the CRA develop an internal educational program to promote a better understanding of Indigenous systems in Canada and how the CRA and the DTC interact with people with disabilities, their families and their caregivers
• that the CRA develop an assessment package, similar to the one used for the Canada Pension Plan disability benefits application, which speaks to Indigenous Peoples
• that the CRA make sure that individuals responsible for Indigenous children and youth are informed that the costs of completing a DTC application are covered under Jordan’s Principle

Next Steps and Recommendations

A submission to the DAC (Appendix D) highlighted that Black Canadians with disabilities experience higher rates of poverty than any other racial or ethnic group in Canada. This is made even more difficult by the fact that Black Canadians with disabilities are more likely to experience barriers to accessing supports and often face discrimination when accessing services. At present, it is challenging to identify and address the specific barriers that Black Canadians face during the process of accessing government supports due to a lack of data disaggregated by race and ethnicity. Without this data, it is difficult to identify the specific barriers experienced by Black Canadians with disabilities and develop targeted and coordinated approaches to address the barriers.

Further, the DAC reviewed a report from Indigenous Disability Canada / the BC Aboriginal Network on Disability Society, which provided 30 recommendations over five categories relating to increasing access and reducing barriers to the DTC among Indigenous Peoples in Canada (which includes First Nations, Inuit and Métis). This report highlights the need to break down historical barriers that have contributed to a deep mistrust in the Canadian federal system, which has led to a low uptake of the DTC and associated federal disability programs among Indigenous Peoples. As such, this report proposes the development of a pilot project that would simplify the tax-filing process for Indigenous Peoples. This project has two primary objectives:

• allow Indigenous tax-filers to submit a simplified income tax and benefit form with a trusted community advocate or navigator. This form would allow the tax-filers to identify themselves as a person with a disability, signaling the need to begin the process to submit a T2201
• allow Indigenous applicants to submit a simplified T2201 form with a trusted community advocate or navigator who can verify their disability to a CRA navigator. This would allow Indigenous applicants to get access to the benefits to which they are entitled, while ensuring they go through the process of applying alongside a person they can trust

The DAC fully supports the creation of such a pilot project to increase uptake of the DTC among Indigenous Peoples.

Regional Considerations

Current Issue

The uptake of the DTC in Quebec and the territories is much lower relative to the rest of Canada. In Quebec this is particularly evident in older adults and seniors (age 45 years and older). Because of the relatively higher incidence of disability in the Indigenous population, it would be reasonable to assume that there would be more DTC uptake from the North.

Progress to Date

In previous reports, the DAC recommended that the CRA collaborate with the Province of Quebec to determine a single eligibility process for the provincial and federal tax credits available for Quebecers with disabilities. The CRA has yet to respond, other than to indicate some discussions are being held with Revenu Québec. The Service, Innovation and Integration Branch of the CRA has also indicated that they are in the process of analyzing a report on DTC uptake in Quebec, which we detail in the following section.

Over the years, the DAC has consistently expressed concern about the relatively low uptake of the DTC in Quebec. ESDC has funded a Quebec-based study to determine why this is the case. A study has been completed and the DAC awaits updates on actions to be taken from the study.

In 2019, the CRA opened three northern service centres in Yellowknife, Iqaluit and Whitehorse in order to improve services in the territories. Staff who field phone calls from area codes in the North have received cultural training.

The DAC has noted that there is limited access to qualified health providers in northern and remote communities and there are high travelling costs. The DAC has raised the question of whether designated individuals who are widely recognized in the community, such as early childhood educators, teachers and local healers, could be included as qualified health practitioners for the purposes of completing the DTC application. The CRA has not responded to this issue other than to modify the questions in the client experience survey to collect responses about expanding the list of qualified health providers.

Next Steps and Recommendations

A submission to the DAC (Appendix E) noted that the proportion of individuals accessing the DTC that lived in Quebec was less than the proportion of the total Canadian population living in Quebec across age groups and impairment. Complementary to this submission, exploratory analysis from the University of Calgary showed that in 2017, 7% of the population with a disability according to the CSD in Quebec received the DTC. This compares to 9 to 19% in other regions. Of note, the Northern Territories (Yukon, Northwest Territories, and Nunavut combined) have a rate of 5%. This is highlighted in the provincial/territorial rates of DTC uptake depicted below (Figure 2).

Figure 2: DTC Uptake Rates in 2017

Accessible description of Figure 2: Map of Canada with percentage of people with disabilities receiving DTC in 2017. Range from 5% in North and 7% in Quebec, to 16% in PEI and 19% in Manitoba.

The submission highlighted three main barriers to accessing the DTC in Quebec:

• people in Quebec struggle to label themselves or their children as disabled. While it is unclear exactly why this is the case, one hypothesis is that the French term handicapé may seem harsher that its English equivalent disabled
• people in Quebec experience difficulties accessing health professionals. In Quebec, there has been an increasing widespread difficulty accessing a family physician. Additionally, there seems to be reluctance among some health professionals to fill out forms on behalf of their patients
• there is widespread belief in Quebec that, for people who do not pay taxes, the DTC provides no benefit or that accessing the DTC may reduce the amount of social solidarity benefits they receive

Moreover, the DAC discussed that there are large variations in eligibility criteria between federal, provincial, and territorial disability programs. This creates additional barriers for applicants seeking support from multiple different disability programs. In Quebec, for example, the two-remittance tax system results in a lack of communication between federal and provincial tax benefit administrations. While in theory the T2201 form can be used as a replacement for the Quebec version of the form (TP-752.0.14-V, Certificate Respecting an Impairment) when applying for provincial tax credits, in practice, many applicants are asked to fill out the TP-752.0.14-V, despite having a completed T2201 form. This creates an unnecessary burden on both applicants and providers. This leads to an emphasis on ensuring cross-provincial fairness in accessing and completing the requirements for obtaining the DTC.

Harmonizing eligibility criteria across levels of government through the creation of a framework of standards is an important step that would allow for fairer and more predictable access to programs for persons with disabilities and their families. Further, the creation of this framework would meet one of the objectives of Accessibility Standards Canada, which is to promote access to programs.

To promote equity across Canada and ensure all Canadians with disabilities are accessing the benefits to which they are entitled, it is essential for the Government of Canada to address these concerns.

Co-Design and Accessibility

Current Issue

Many of the disability programs currently administered by the federal government have issues relating to low uptake, awareness, and accessibility. As required by the Accessible Canada Act, the CRA and other federal government agencies and departments must publish annual accessibility progress reports that outline efforts to deliver on accessibility plans (which for the CRA, includes the DTC). It is not clear how these plans will be used, and there are concerns that the plans typically do not have inclusive co-design approaches and methods in development and implementation.

Progress to Date

In the past, the DAC created an Indigenous Issues Task Group, which, among its recommendations, emphasized the need to ensure that representatives of Indigenous Peoples are actively engaged in the co-design, implementation and delivery of programs and services intended for their benefit. The CRA noted that efforts are underway throughout the federal government to engage more Indigenous Peoples in this process and move toward the Indigenization of many of its procedures. The DAC has yet to obtain a response about how specifically such co-design would take place.

Previous discussions further focused on the accessibility of the CRA’s communications, with recommendations to hire a student from the Ontario College of Art and Design University’s Inclusive Design master’s program to review sample communications. The DAC has asked the CRA about whether its website, publications, communications and forms have undergone an accessibility audit. All CRA forms should clearly state that they will be provided in alternate format on request. The DAC also recommended that the CRA provide training on person-first language for its public-facing staff. The CRA has not reported on any accessibility audits so far. However, the Accessibility Assessment ToolKit initiative and accessibility framework is being implemented with the goal to track and report on the Agency's progress with respect to compliance with the accessibility standards introduced through recent changes to Canada's accessibility legislation. Progress in improving accessibility of internal and external communications is anticipated, based on CRA’s Accessibility Plan.

Next Steps and Recommendations

To improve low uptake, awareness, and accessibility of the DTC, the DAC recommends the CRA adopt a co-design approach in all its work. The DAC consulted with Inclusive Design students at the Ontario College of Art and Design University to learn about best practices for an effective and thoughtful co-design process that could be implemented by Government of Canada organizations moving forward. A summary of these practices is outlined below:

• The co-design process differs from a consultation in that it requires the thoughts and opinions of co-designers to be centered throughout the entirety of the design process. This requires consistent and ongoing communication, as well as frequent engagement throughout the process
• Make sure that there is diversity among individuals that are part of the co-design process to ensure that co-designers are as representative as possible of the general population. Many characteristics, such as location of residence, income level, race, ethnicity, age, and gender, are important to consider in developing a diverse group of co-designers. In line with this, the co-design process must be culturally safe to ensure all participants feel comfortable participating
• Power imbalances between co-designers and government representatives need to be decreased to the greatest extent possible
• Consider multiple different ways of engaging co-designers to ensure as many people can be included as possible and to ensure that the process is accessible to everyone (for example, using in-person and virtual meetings, and finding ways to engage with individuals that have challenges with verbal communication)
• Make sure that co-designers are adequately compensated in a way that does not interfere with their access to other benefits or their taxable income
• Sufficient training of those planning to facilitate the co-design process is required to ensure that facilitators can hold space for issues that are often emotional for many and not perpetuate further harm against a community. This is key to establishing trust between facilitators and co-designers
• Be open to changing the way things are typically or have previously been done to create a more accessible process

2.2. Discussions and Recommendations in relation to the DTC Access Roadmap

2.2.1. Awareness

Current Issue

There is a widespread lack of awareness about the DTC across Canada among eligible populations.

Progress to Date

From its inception, the DAC has taken a strong position that the DTC ought to be transformed from a non-refundable credit into a refundable credit to be fair to low-income Canadians and improve their uptake of the DTC (some people dismiss applying for the DTC if they determine they wouldn’t receive the financial value of the credit). Middle- and higher-income Canadians are the primary beneficiaries of the DTC in its current state as a non-refundable tax credit. It is also the DAC’s view that a refundable DTC must be treated as exempt income by provincial/territorial social assistance programs.

EDSC has done some work to actively improve public awareness about the DTC and the RDSP, grant, and bond through a range of outreach activities, including in collaboration with CRA. This includes the delivery of joint informational webinars on the DTC and RDSP/Grant/Bond with the aim of promoting them to individuals who may be eligible but have not yet applied. 50 webinars were delivered last year, many of which were joint presentations with CRA on the DTC. ESDC also promotes information at conferences and events, and via direct engagement with a wide range of community-based stakeholders. DTC pages on Canada.ca were updated in June 2022 to contain more information in plain language and also include links to the CRA gateway Benefits. A landing page for Persons With Disabilities is also under way which will include links to all federal programs and benefits for PWDs. A webinar for PWDs was also held and is now available on YouTube and Canada.ca.

Next Steps and Recommendations

Despite these activities, the uptake of the DTC is relatively low across Canada, suggesting that individuals are missing information and experiencing many barriers during the process of applying for the DTC. The DAC discussed the importance of increasing the uptake of the DTC among working age (18 to 64 years) individuals in Canada. As noted in our previous report, individuals under the age of 18 years and over the age of 64 years comprised the majority (60.6%) of DTC beneficiaries in 2019. Increasing uptake of the DTC in this age group is an important priority, particularly if the Government of Canada chooses to utilize the DTC as a gateway for the forthcoming Canada disability benefit.

2.2.2. Eligibility

Current Issue

Eligibility criteria for the DTC are inconsistent and lack clarity in certain instances.

Progress to Date

The DAC has raised concern about several eligibility criteria, particularly with criteria related to impairments in mental function and/or episodic conditions. The DAC strongly urged the CRA to discontinue the practice of interpreting the phrase “all or substantially all the time” in DTC applications as 90% of the time. This interpretation meant that to qualify for the DTC, applicants had to show that their impairment(s) affected their basic activities of daily living 90% of the time, which can be difficult for people with episodic and/or mental disabilities. The CRA agreed to exclude explicit reference to 90% in the DTC electronic application. However, the 90% standard remains in the DTC paper application to further define what "all or substantially all of the time" means.

DTC assessors have access to the medical resource guide. The guidelines permit more flexibility in the interpretation of “all or substantially all of the time” by noting that the effects of the impairment must be present and challenging “all or almost all the time” rather than the arbitrary 90% rule.

The DAC has made three further recommendations regarding the CRA’s interpretation of eligibility criteria:

• that the CRA no longer interpret “an inordinate amount of time” as three times the amount of time it takes a person without the impairment
• that the CRA interpret “severe and prolonged restriction” to include impairment in two or more mental functions, when none of the functions creates severe and prolonged restriction on their own
• that the CRA interpret “severe and prolonged restriction” to include impairments in mental functions that are intermittent and/or unpredictable

The changes to the legislation are such that mental functions is looked at on a cumulative basis, so not all functions need to be marked restrictions on their own to qualify. The CRA looks at this category as a whole, however the DAC identified that this needs to be described more explicitly in how this is determined. The CRA updated its manuals and clarification letters to help assessors analyze and collect adequate information to make a determination, noting that the CRA no longer excludes episodic impairments, but they still need to meet the legislated test.

Next Steps and Recommendations

Despite progress made to date, inconsistencies, and ambiguity in eligibility criteria for the DTC persist. The DAC continues to have concerns regarding the interpretation of “all or substantially all” as 90% of the time in the DTC application process for specific condition or cumulative effect eligibility. This interpretation creates difficulties for applicants who have episodic conditions, such as multiple sclerosis, that may not meet the 90% criterion but that still require support from the DTC. Arthritis, diabetes, and depression are examples of other long-term conditions that may be episodic.

Furthermore, there is confusion among providers on how to complete the DTC application for patients with episodic conditions. There is a need to create guidance for practitioners and applicants with respect to those with episodic conditions applying for the DTC to make sure that these conditions can be addressed in applications in a robust, consistent manner, rather than the current model of a point-in-time evaluation. Additional clarity around this interpretation will also be particularly important in the near future in light of increasing cases of long-COVID resulting from previous COVID-19 infection.

Shifting the interpretation of this criterion is supportive of the person-centered, biopsychosocial model of disability outlined above, as it will require the consideration of additional aspects of disability in the DTC application. In line with the proposed shift in the definition of disability, eligibility criteria for the DTC will need to be reexamined in consideration of this new approach.

The DAC also notes concerns with the questions about caregiving that are only included in the mental functions essential for the everyday life section of the practitioner’s portion of the application form. Specifically, this section of the form asks whether the patient has an impaired capacity to live independently without daily supervision or support from others. The DAC questions whether it is appropriate for this question to be included in this section but not in the other sections of the form.

2.2.3. Procedure for Applying

Current Issue

Many challenges exist throughout the process of applying for the DTC, for medical practitioners and applicants, which create barriers to accessing the DTC.

Progress to Date

In previous reports the DAC recommended a cap be placed on the fees that promoters can charge for assisting a person to make a DTC application. In response, the federal government passed the Disability Tax Credit Promoters Restrictions Act. However, the regulations drafted to enforce a cap of $100 for promoters fees have been suspended from implementation pending the outcome of litigation in British Columbia. The DAC has also expressed concern about the high fees that medical practitioners charge for certifying DTC applications.

The DAC has studied the issue of expanding the list of health providers who can assess eligibility for the DTC. The DAC suggested that the CRA develop criteria to guide an expansion of this list. The CRA did not take action to develop these criteria. As a result, the DAC arrived at a simpler solution: that the CRA should not limit the list of eligible providers and that any licensed health provider should be eligible to certify DTC applications. The CRA has not implemented this recommendation.

In response to DAC recommendations, the CRA developed a medical practitioner webinar, which is available on YouTube and Canada.ca. Medical advisors also take the time, whenever a medical practitioner calls the medical practitioner 1-800 line, to educate and explain how to fill out Part B of the T2201. The CRA has created the new position of navigator to help applicants with particularly complex cases. Since the introduction of navigators, along with DTC call centres and digital applications, the CRA has reported a reduction in the number of clarification letters and their associated delays and costs in DTC applications. The CRA has advised that it plans to hire Indigenous navigators to complement the services but has not provided confirmation that these hires have taken place.

Next Steps and Recommendations

The DAC notes that practitioners still experience many challenges with filling out a DTC application. DAC consultations with practitioners highlighted the need for more resources and guidance for practitioners to ensure they can fill out a DTC application accurately for their patients. There is also a need for clarity and consistency across the country with respect to the fees practitioners can charge to complete DTC applications. This is not well understood by either practitioners or applicants, and high fees can be a barrier to applying for and accessing the DTC.

The DAC encourages the CRA to consider offering training opportunities for practitioners to ensure they understand who is eligible for the DTC and how to complete an application. It is important that these training sessions be available in a variety of settings, such as in hospitals, at conferences, and online, to ensure a wide reach of the information. An opportunity exists to create training courses that would allow practitioners to receive continuing education credits.

The DAC, along with consulted practitioners, also supports the idea of having a broader range of professionals, such as social workers, who can fill out all sections of the DTC application form. This recognizes the challenges that applicants experience accessing certain practitioners (such as family doctors) in various regions across Canada and recognizes the differing responsibilities and scope of practices of practitioners across provinces and territories.

Practitioners and applicants also need to be able to easily access information that helps with questions about the application process. This is evidenced by the high call volume to the CRA’s general enquiries line related to DTC claims for self or for transfers from dependents in 2021 and 2022 (with a notable 5% increase from 2021 to 2022). Reasons for these calls are summarized in Table 2 below.

Table 2: Reasons for Calls to the CRA General Enquiries Line in 2021 and 2022

Reasons for Calls to the CRA General Enquiries Line in 2021 and 2022

Issue related to CRA enquiry	2021	2022
Eligibility issues	12,243 (10%)	17,947 (13%)
How to apply for DTC	18,145 (14%)	22,583 (17%)
How to claim DTC	13,507 (10%)	22,595 (17%)
Repayment Assistance Program requests	17,405 (14%)	12,272 (9%)
Status updates	45,373 (36%)	42,374 (32%)
Other	20,523 (16%)	15,787 (12%)
Total calls	127,196	133,558 (up 5% from 2021)

While the DAC appreciates that there is a high volume of calls to the CRA regarding questions about the DTC application, practitioners and applicants need to be able to have their questions addressed on a more immediate basis to prevent delays in completing and submitting an application. As recommended in 2020, this should include the development of a designated call line in addition to the regular CRA phone line, with specially trained staff to address more complex questions relating to DTC eligibility criteria, impairment in mental functions, applications on behalf of children and DTC appeals (Disability Advisory Committee, 2020a).

An expansion of both the number and role of CRA navigators is also needed. The navigator role, created in April 2021, is free of charge and has the purpose of supporting applicants and their representatives in navigating complex circumstances in the DTC application process. The CRA currently has three navigators, one for each of the three tax centres. The DAC notes that while the navigator role is a positive step forward, applicants do not have direct or easy access to the navigators. Applicants have to contact the CRA general enquiries line before being connected to a navigator by a call centre agent. The capacity of navigators to support CRA call centre agents with calls is currently quite low, with only 600 of the 133,000 DTC-related calls being directed to navigators in 2022. Improvements in the ability of practitioners and applicants to access CRA staff and navigators is much needed and will be particularly important to address questions pertaining to the newly launched digital DTC application in a timely manner.

In expanding the navigator role, the DAC discussed the potential for certain navigator functions to be outsourced to other organizations with existing capacity and expertise. There are several charities, community living groups, caregiver support groups, constituency offices for members of Parliament and non-profit organizations that have resources, how-to guides and the ability to provide support on how to navigate the process of applying for and claiming the DTC for no charge. Examples (not comprehensive) of organizations providing free support, information and advice include organizations like the Multiple Sclerosis Society, Ostomy Canada Society, Momentum, Independent Living Canada, and Manitoba Possible. One organization to note is Plan Institute, which provides free one-to-one support and resources to help people become informed, apply for the DTC and open a registered disability savings plan. In the past, the Plan Institute has partnered with IDC/BCANDS to support Indigenous Peoples with disabilities in applying. Providing support and resources to these types of organizations to support navigator roles could be a cost-effective approach to reaching people in the community.

In addition, the CRA should ensure accessibility in its communications about the application process. Information should be available in plain language and adhere to universal design, in consultation with people with disabilities (see recommendations 12 and 13).

2.2.4. Objections and Appeals

Current Issue

When initial applications are not accepted by the CRA, an applicant may file an objection with the CRA, which can then be escalated by filing an appeal with the Tax Court of Canada. Recommended guidance to claimants is to provide further information from a medical practitioner, or to file an income tax objection. However, guidance elsewhere suggests that, even if one is not sure if they qualify, they should apply. Due to lack of knowledge of any determination rules beyond what is publicly available, applicants may choose to object, regardless of the reason listed on the notice of determination. Data on the conditions and sociodemographic characteristics of those who have an application rejected is not made publicly available. Data on the number of objections, though used internally, is also not publicly available. This does not allow for a detailed look at how the application process can be improved to reduce applications that might be initially declined before later being accepted.

Progress to Date

The CRA advised the DAC that its Appeals Branch and its navigators track data on the number of objections and appeals received, approved, and rejected. In their 2022 report, the DAC requested that the CRA share the data it currently collects on the number of objections and appeals, their nature and the time taken to resolve them.

Next Steps and Recommendations

Being able to quantify the number of rejections, and the reasons for rejections, would allow the CRA to determine best methods to improve the DTC application process. This would reduce the number of applicants who later get accepted after having to submit follow-up paperwork following an initial rejection, while also reducing the number of applicants who do not meet eligibility criteria in the first place from applying. The DAC encourages the CRA to collect and release this data, so interested individuals can recommend enhancements or highlight criteria to reduce the risk of a rejected application.

2.2.5. After Receiving the DTC

Current Issue

Low uptake of the DTC results in low uptake of the programs linked to receipt of the DTC.

Progress to Date

In previous reports the DAC has emphasized the importance of collecting data about DTC applicants and recipients to obtain information about the role of the DTC as a gateway to other disability benefits and programs, rather than just a credit to reduce an individual’s tax burden. The DAC has consistently raised concerns that this gateway function is not well understood or utilized by potentially eligible individuals. The DAC has recommended that the CRA improve communications with potential applicants about the DTC’s gateway function.

The DAC has been advised that the creation of an interdepartmental advisory committee would be a political decision. The DAC advises the Minister of National Revenue. The Minister of Diversity, Inclusion and Persons with Disabilities has their own disability advisory group, which has not currently identified the RDSP or DTC as a priority. In the absence of a multi-ministry committee, the DAC has been informed that engagement between departmental officials is ongoing. ESDC, CRA, and Finance officials meet regularly to discuss issues related to the DTC and RDSP, as applicable. The DAC acknowledges these informal channels but recommends formalized and transparent interministry processes related to the RDSP, given the direct connection to the DTC.

Next Steps and Recommendations

The DTC has a critical function as a gateway to accessing many other tax credits, benefits, and programs provided by the Government of Canada. The DAC notes that the awareness of this fact is lacking among those that are potentially eligible to apply for the DTC. Without this knowledge, the time, cost, and resources needed to apply for and access the DTC may outweigh the benefit of receiving the DTC. This is particularly relevant for individuals at a lower income level, as the non-refundable design of the DTC provides little financial benefit to those that do not owe income tax. The DAC anticipates that providing a more comprehensive understanding of the suite of programs individuals could access once they successfully obtain the DTC would increase the number of individuals applying for and subsequently accessing the DTC. In line with this, the DAC suggests that information about the DTC be shared publicly and with providers that market the DTC as a gateway benefit, rather than just a tax credit.

To make it easier for individuals that receive the DTC to access the associated gateway programs, the DAC discussed the importance of issuing an official DTC certificate. Currently, DTC recipients receive a two-page, text-heavy letter that confirms their receipt of the DTC. This letter may contain information about the recipients’ disability that they may not want to disclose to institutions (such as banks) that they will need to consult with to access gateway programs. A one-page official DTC certificate would protect the privacy of the DTC recipient and simplify the process of providing proof of receipt of the DTC for both recipients and downstream providers. A standalone bona fide certificate to the recipient would help distinguish this from the approval letter and would reduce confusion among recipients.

Additionally, the DAC had many discussions regarding the role of the DTC as a gateway for other programs and benefits provided by the Government of Canada. If the DTC is to continue to be the gateway to these programs, and potentially to new programs created in the future such as the Canada disability benefit, the considerations regarding design of, and eligibility for, the DTC discussed above must be implemented. These improvements will not only increase uptake of the DTC and linked programs but will also establish more consistent uptake across provinces and territories, which is essential to promote equity of access across Canada.

The DAC also discussed the design of a registered disability savings plan (RDSP), an important financial tool for DTC recipients. The DAC has many concerns regarding the current RDSP legislation, as summarized below:

• people cannot fully benefit from funds in their RDSPs due to the combined effect of the lifetime disability assistance payment formula and the repayment obligation associated with the assistance holdback amount
• people who are considered incapable of signing a contract may not be able to open an RDSP
• there are many people who do not live long enough to benefit from the funds in their RDSP. It is unclear what happens to an individual’s estate and the beneficiaries of an estate.

As such, the DAC recommends a comprehensive overview of RDSP legislation. Specific aspects of the RDSP that the Department of Finance Canada and ESDC should consider changing to address current concerns with the RDSP include the following:

• adjust grant and bond amounts on an annual basis to match inflation
• create a public RDSP-bond-only option with automatic enrollment of DTC holders who have yet to open an account
• include RDSP modernization in the financial security pillar of the Canada Disability Action Plan
• review the process of accessing funds from an RDSP

3. Conclusion

The DAC advises the CRA on interpreting and administering tax measures for Canadians living with disabilities in a fair, transparent, and accessible way. To this end, the DAC has provided a range of different recommendations in the past five years. Many policy frameworks, processes and services have been improved because of the DAC’s proposals. However, as the report card in Appendix C shows, some important challenges remain to be addressed to improve DTC uptake, eligibility, and accessibility, especially for its gateway function to other disability supports and services. This holds significant and immediate importance with the design of the federal Canada disability benefit. Whereas the CRA has made progress in improving engagement and service provision to populations of special consideration, significant effort is required to better serve Indigenous Peoples, Black people, and racialized communities, and address regional discrepancies. It is imperative that the CRA ensure future changes to the design and implementation of programs are co-designed with underserved groups, individuals with expertise, including those with lived experience, and relevant practitioners.

The DAC recognizes that its scope and potential impact is limited to policy and administrative processes falling within the mandate of the minister of national revenue and the commissioner of the CRA. However, to successfully improve tax measures for Canadians living with disabilities, other agencies and departments in the federal government as well as provincial and territorial governments need to co-operate and actively collaborate through joint committees or other cross-organization structures with the CRA and take into consideration the recommendations of the DAC.

References

• Canada Revenue Agency (2020). Tax measures for persons with disabilities. Disability-related information (PDF, 842 KB). Government of Canada website
• Canada, S. o. (2017). Breaking Down Barriers: A critical analysis of the Disability Tax Credit and the Registered Disability Savings Plan
• Canadian Medical Association (2013). Canadian Medical Association Submission on Bill C-462 Disability Tax Credit Promoters Restrictions Act
• Disability Advisory Committee (2019). Enabling Access to Disability Tax Measures (PDF, 836 KB)
• Disability Advisory Committee (2020a). The Client Experience
• Disability Advisory Committee (2020b). Readout: Disability Advisory Committee Meeting - November 10, 2020. Canada Revenue Agency
• Dunn, S., & Zwicker, J. (2018). Why is Uptake of the Disability Tax Credit Low in Canada? Exploring Possible Barriers to Access. The School of Public Policy Publications, 11
• Income Tax Act, § 118.3 (1985)
• One-time payment to persons with disabilities (2020)
• Publication and open data portal
• Disability Tax Credit Statistics – Canada.ca
• Disability Tax Credit Statistics – (2022 Edition) 2012 to 2021 Calendar Years - Open Government Portal (canada.ca)

Appendix A

The Disability Tax Credit Explained

The DTC is a non-refundable tax credit designed as a horizontal tax equity instrument to provide tax relief for the additional costs that persons with severe disabilities may face as barriers to participation in society (Canada, 2017; Disability Advisory Committee, 2019; Dunn & Zwicker, 2018). The purpose of the DTC is to reduce the income tax burden for persons with severe disabilities who incur additional costs (often non-itemizable) that are not experienced by persons without disabilities (Disability Advisory Committee, 2019). The design of the credit is based on the assumption that persons with severe disability incur a range of these indirect or non-itemizable disability-related costs that they are not able to claim under the medical expense tax credit (Disability Advisory Committee, 2019). Examples of these types of costs include hiring a trained caregiver or paying higher prices due to reduced options for shopping, custom clothing, or special transportation. Also, the DTC design is based on the assumption that persons with severe and prolonged disabilities have their income-earning capacity negatively affected because of the extra time they must devote to activities of daily living due to their severely disabling condition.

To be eligible for the DTC, applicants must have a severe or prolonged impairment in physical and/or mental function impeding their ability to conduct activities of daily living. Section 118.3 of the Income Tax Act describes DTC eligibility requirements as including functional impairment or having “one or more severe and prolonged impairments in physical or mental functions” (prolonged being longer than 12 months), or the ability to perform at least one basic activity of daily living must be markedly restricted, or would be if not for certain and regular therapy (Government of Canada, 1985). Markedly restricted applies to the following basic activities of daily living all or substantially all of the time: Walking, Mental functions, Dressing, Feeding, Eliminating (bowel or bladder functions), Hearing, Speaking, Vision and Life-sustaining therapy, or cumulative effects of the combination of these limitations.

Since being introduced into the Income Tax Act, as a tax deduction for persons who are blind, the role of the DTC has grown in scope while the original intent has remained. The DTC now has a second role as a gateway for establishing eligibility for a range of other disability-related credits, programs and services at the federal, provincial, and territorial levels (for a list of programs see Disability Advisory Committee, 2019; Dunn & Zwicker, 2018). A registered disability savings plan and the child disability benefit are two of the most significant supports for which Canadians of all income levels could meet eligibility requirements. This gateway eligibility function of the DTC continues to play an increasingly larger role in disability benefits and services in Canada. Most recently, DTC eligibility was used as a gateway for the non-taxable, non-reportable, one-time $600 payment in recognition of the extraordinary expenses incurred by persons with disabilities during the COVID-19 pandemic ("One-time payment to persons with disabilities," 2020).

To apply for the DTC, an applicant must submit a completed Form T2201, Disability Tax Credit Certificate, which consists of components filled out by the applicant (Part A) and by the medical practitioner (Part B) as described in Disability-Related Information for 2020 (Canada Revenue Agency, 2020).

Part A (completed by applicant): The applicant is asked to complete basic information about the person with the disability (name, social insurance number, mailing address), information about the person claiming the disability amount (name, social insurance number, relationship to the person with disability and the support that person provides), information on tax adjustment for applicable years (a DTC certificate holder can back-file for up to nine years in addition to that tax year and receive the full benefit for each of those years) and authorization for a medical practitioner to provide the CRA with information from their medical records. Part A of the T2201 form is the component that promoters or a third party would assist clients with completing. Notably, Guide RC4064 Disability Related Information on the Government of Canada website contains a self-questionnaire that can help to determine if an individual may be eligible for the DTC.

Part B (completed by the medical practitioner): Form T2201 is then taken to a medical practitioner who certifies that the applicant has a severe and prolonged impairment in physical or mental function. The applicant is responsible for any fees that a medical practitioner charges to fill out the form (some practitioners waive the fee for patients, and in other cases the fee can range up to $300). Medical practitioners are asked to assess basic activities of daily living including vision, speaking, hearing, walking, eliminating, feeding, dressing and mental functions necessary for everyday life. The need for life-sustaining therapy and cumulative effects of significant restrictions across these areas are also aspects that could render an applicant eligible. Sometimes several medical professionals are involved, either because an assessment of a person’s functional activity requires input of several providers or because multiple providers were historically involved in treating an applicant.

Only specific types of medical practitioners can certify each of these categories of activities of daily living by indicating yes or no to the category and when the patient’s restriction in that category became markedly restricted (noting this may not coincide with time of diagnosis). For the life-sustaining therapy categories, assessment revolves around whether the therapy supports a vital function, is required at least three times per week, and takes an average of at least 14 hours per week. This is noted with a mandatory section describing how the therapy meets the criteria.

The provider is also asked to describe in a written report the effects of the patient’s impairment on their ability to do each of the basic activities of daily living that were indicated as markedly or significantly restricted. This may include copies of medical reports, diagnostic tests, and other information with allowance for as much space as required. The provider is also asked to indicate that the impairment has lasted or is expected to last for a continuous period of at least 12 months and whether an impairment is expected to improve, and when. The provider is then asked to indicate the years the medical practitioner has been working with the patient and that they have medical information on file supporting the restrictions for the years certified on the form. The medical provider then signs that they certify that the information given in Part B is correct and complete.

With Part B completed, the applicant can submit the T2201 form to the CRA. After the CRA receives the form, they review the application. Upon completion of review, a notice of determination is sent to the applicant to inform them of the eligibility decision for the disability tax credit certificate. The decision to approve or reject an application for the credit rests entirely with the CRA, based on the information given by the medical practitioner.

If the application is denied, an explanation is given on the notice of determination. If denied, the person with a disability has the right to submit a new application or ask for a request for a second review by writing to the CRA and asking them to review the application. To do this, the applicant must include any relevant medical information that was not already sent, which might include an additional medical report or letter from a medical practitioner familiar with the individual’s situation. The applicant can also submit a formal objection to appeal the decision. The time limit for filing an objection is no later than 90 days after the notice of determination and the objection and appeal rights are described in the Income Tax Act.

Approval of the T2201 form will result in the issuing of a notice of determination that indicates that the applicant is eligible for the DTC, meaning the individual can claim the disability amount on their tax return or a dependent can transfer the amount to their caregiver. If the applicant is 18 years of age or older at the end of 2022, they can claim the federal disability amount of $8,870 on their federal income tax and benefit return. This amount is then multiplied by a person’s tax rate to determine the actual dollar benefit that they will receive. For those that qualify for the disability amount and are under 17 years of age they can claim an additional $5,174. A supporting document from a medical practitioner stating that the person with the disability is dependent on that caregiver may be required.

Digital application

In recent years, in response to recommendations made by the Disability Advisory Committee, the CRA has launched a digital application. Applicants no longer need to print and complete the form by hand and take it to their medical practitioner: They can complete Part A of the application form online. The applicant’s portion of the online form is prepopulated with information on file at the CRA. Once completed, the applicant receives a reference number to give to their medical practitioner to use to complete Part B of the form. Using that number, the medical practitioner completes Part B of the form through a digital application. The digital form guides practitioners through the DTC application asking questions that are needed to determine eligibility. Once completed, the form is digitally submitted to the CRA.

Appendix B

The Disability Advisory Committee Terms of Reference

Mission: To advise the Canada Revenue Agency (CRA) on interpreting and administering tax measures for Canadians living with disabilities in a fair, transparent and accessible way

Mandate of the Committee

1. To provide advice to the Minister of National Revenue and the Commissioner of the CRA on the administration and interpretation of laws and programs for disability-related tax measures administered by the CRA
2. To provide advice on how the needs and expectations of the disability community can be considered by the CRA as they interpret and administer disability-related tax measures. This may involve recommendations for information gathering and collaboration between the CRA and the disability community
3. To provide advice on how the CRA can increase:
   1. overall awareness of tax measures for persons with disabilities
   2. take-up of tax measures for persons with disabilities
4. To provide advice on how the CRA can best:
   1. engage persons with disabilities and their support communities
   2. deliver information, education and outreach initiatives about disability-related tax measures and important administrative changes to:
      • persons with disabilities
      • those who support persons with disabilities
      • professionals who advise persons with disabilities
      • health practitioners
      • not-for-profit agencies and various levels of government
5. To review and make recommendations for improvement to the CRA’s administrative practices in order to enhance the quality of the services and products the CRA provides to persons with disabilities
6. To provide the CRA with a formalized means of consulting with various stakeholders
7. While legislative change is beyond the mandate of the Disability Advisory Committee and the role of the CRA, recommendations for legislative change to disability tax measures may be made by the Committee for consideration and will be forwarded to the Department of Finance Canada

Composition

Membership on the Committee will be determined on the following basis:

1. The Committee consists of a blend of service providers (for example, health, tax professionals, lawyers, accountants), advocates of the disability community and persons with disabilities
2. The Committee will be composed of 12 members and two co-chairs, appointed for a term not to exceed 48 months (starting with the first meeting of their appointment)
3. One of the Committee members will act as vice-chair, to support the private sector co-chair and provide activities at the discretion of co-chairs such as:
   • help setting the agenda for the in-person meetings
   • participating in discussions with co-chairs as to the progress of the Committee and the work that needs to be undertaken
4. The minister and the commissioner appoint the members and determine the length of their terms
5. To have some continuity of membership, during the first four years of the Committee, the members will be given different terms:
   • Four members will be appointed for 48 months
   • Four members will be appointed for 36 months
   • Four members will be appointed for 24 months
   • Thereafter, members will be appointed for terms of 36 months
6. Should a member not be able to serve their full term of appointment, the minister jointly with the commissioner will then appoint a suitable individual to complete the remaining portion of the term of appointment
7. Membership is voluntary and members will not be paid to attend meetings. However, reasonable travel and accommodation expenses to attend meetings will be reimbursed according to the CRA Travel Policy.

Other federal representatives (for example, Department of Finance Canada, Employment and Social Development Canada) may be welcomed in the role of observers or resource people

Role of Committee members

1. The responsibilities of Committee members include:
   • awareness of the needs and experiences of persons with disabilities to inform the Committee’s deliberations and recommendations to the CRA on its disability-related tax measures
   • identifying topics for consideration or presentation to the CRA
   • offering advice, comments and recommendations on CRA services, products, and administrative policies and other issues and initiatives that are presented to the Committee
   • undertaking activities to inform Committee advice and recommendations to the CRA such as mechanisms for stakeholder engagement and collaboration (for example, surveys, focus groups)
2. Committee members have been selected to represent the views of their respective communities and associations. The members agree not to use the Committee as a means to advance their own personal interests or further the sole interests of the associations they represent
3. Committee members agree not to act as advocates to address the tax situations of specific taxpayers or to raise cases with the Committee that are before the courts
4. Committee members are expected to participate in a collaborative and constructive manner that promotes tangible outcomes and upholds public confidence in the Committee’s mandate, advice, and recommendations. Members are asked to address any individual concerns through dialogue with the co-chairs and, as appropriate, the Committee as a whole
5. Committee members are not spokespersons for the CRA. Each member is a stakeholder, representing themselves as an expert or as an advocate of persons with disabilities
6. Any information developed in consultation with other groups or shared by Committee members will become part of the formal and public proceedings of the Committee upon consensus of the Committee
7. Members may discuss consultative initiatives of the Committee with their communities and colleagues, unless expressly advised that they should not do so for reasons of confidentiality

Establishment of co-chairs

1. The Assistant Commissioner, Assessment, Benefit, and Service Branch, CRA, will serve as co-chair of the Committee alongside a co-chair from the private sector
2. The private-sector co-chair must be a Committee member
3. The term of a private-sector co-chair will be 24 months (starting with the first meeting of their appointment
4. After the initial appointment of a private-sector co-chair by the minister and the commissioner for 24 months, the private-sector co-chair can be renewed by the minister and the commissioner for a subsequent term of 24 months, or a new, private-sector co-chair can be appointed by the minister and the commissioner
5. Members of the Committee can be eligible for appointment as co-chair after serving a term of 24 months or more
6. Should the private-sector co-chair not be able to serve their full term of appointment, an appointment will take place according to this section’s 2), 3), 4) and 5)
7. The outgoing co-chair will have the opportunity to remain a member of the Committee for an additional 12 months to ensure continuity between the co-chairs. This could mean that the Committee will be composed of 13 members on some occasions

Roles of co-chairs

1. Ensure that the Committee adheres to its mandate and the members fulfill their roles
2. Develop meeting agendas in concert with the Committee’s mandate and roles
3. Facilitate meetings and lead the discussions, including during videoconferences and teleconferences
4. Ensure that all members are heard, engaged and respected in the work of the Committee
5. Report on the progress made by the Committee to the minister and the commissioner
6. Serve as spokespersons for the Committee

Responsibilities of the CRA co-chair

1. To be the liaison between the CRA and the Committee
2. To provide secretariat services to the Committee which includes, but is not limited to, providing the Committee with data necessary to informing their work and any recommendations such as:
   • how the CRA liaises with disability stakeholder groups
   • how the CRA handles enquiries about disability
   • processes the CRA uses to decide on DTC eligibility
   • requirements of persons to maintain their DTC eligibility
   • rates of acceptance and rejection by activity
   • appeal processes and data

Responsibilities of the Committee co-chair

1. To be the liaison between the 12 members of the Committee and the CRA in its secretariat function
2. To represent the views of the Committee as a whole
3. To guide the Committee in its advisory function

Meetings

1. Upon initial formation, the Committee will meet three times per year. The frequency of meetings will be periodically reexamined to ensure best use of Committee members’ time
2. The meetings will be held in Ottawa at location(s) that are accessible to those participants who are persons with disabilities. Other methods of meeting may also be utilized in order to keep costs at a reasonable level, such as videoconferences, teleconferences and online consultation, instead of face-to-face meetings, in accordance with Composition section 7)
3. In order for a meeting to take place, a quorum is necessary and will be met with a minimum of seven members in attendance

Topics of discussion

1. The co-chairs are responsible for setting meeting agendas in consultation with Committee members. Any member of the Committee can submit relevant topics for discussion to the co-chairs
2. An agenda item presented for discussion or activity that is not aligned with the mandate and role of the Committee or that does not meet with the consensus of the Committee will not be pursued
3. In the event of dissent arising about whether an agenda topic or activity is aligned with the mandate and role of the Committee, the co-chairs or the minister and the commissioner will have the authority to rectify the dissent
4. The minister or the commissioner may ask the Committee to discuss and analyze a specific topic
5. The Committee can request information as defined in Responsibilities of the co-chair from the CRA 2) section necessary to informing a topic of discussion

Reporting

1. A record of meeting proceedings will be kept and submitted to the minister and commissioner as well as made publicly available;
2. The Committee may report on a specific topic to the minister and the commissioner in the format of a letter sent to the minister and the commissioner indicating the summary of the findings and the recommendations of the Committee
3. In the event that the minister or commissioner asks the Committee to discuss and analyze a subject, the Committee will report on this discussion and analysis will be sent to the minister and the commissioner in the format of a letter indicating the summary of the findings and any attendant recommendations
4. At the end of each year (following three meetings per year), the Committee will report to the minister and the commissioner with a summary of all topics discussed, as well as recommendations for all topics
5. Meeting proceedings (a), specific reports (b), and annual reports (c) will be reviewed and approved upon consensus of Committee members

The CRA will assist the Committee in ensuring that all meeting materials and Committee reports are fully accessible

Secretariat

1. The Committee co-chair is the Assistant Commissioner of the Assessment, Benefit, and Service Branch or as an alternate, the Director General of the Disability, Indigenous, and Benefits Outreach Services Directorate
2. The Assessment, Benefit, and Service Branch will provide secretariat services for the Committee, performing functions such as:
   • maintaining membership lists and coordinates of each member
   • circulating agendas, minutes and documentation to Committee members
   • organizing materials and all logistics for Committee meetings
   • supporting the co-chairs in their roles and responsibilities communicating with the commissioner, the minister and other stakeholders

Appendix C

Report card

Topic: Data - Client experience survey

• Recommendation 1st annual report
  • That the Canada Revenue Agency develop, in collaboration with the Disability Advisory Committee, a client experience survey that would align with the health provider survey, but be modified as appropriate to suit the needs and concerns of the target group comprising a representative sample of current and former DTC beneficiaries. (#29)
• Status - Completed
  • The client experience survey went live on April 20, 2020.
  • To improve the survey’s content, a careful analysis of each question, and the type of data it will yield was undertaken.
  • CRA is building a more dynamic survey, one in which the questions adapt to the answers provided. This in turn will reduce the overall number of questions participants are asked to answer.
  • A new introduction to the survey is being developed to encourage participation from beginning to end. The addition of a progress bar is also being investigated so that participants can see how far along they are and how far they have to go.
  • A review of the language level used and e-reader capabilities is being completed to ensure the survey meets the accessibility standards for persons with disabilities.
  • Options to make the survey more readily available, such as through a direct online link, are being explored.
  • A review of various promotional strategies to raise awareness, to encourage participation and to remind applicants about the survey is in progress. Leveraging existing tools such as DTC navigators and social media is likely, however, new promotional tactics are being explored as well.

Topic: DTC Application Procedure

• Recommendation 1st annual report
  • That the client experience survey on the DTC and other disability tax measures to be carried out by the Canada Revenue Agency include a question as to whether the applicant or recipient had any difficulty accessing a health provider for the purposes of completing Form T2201 and, if so, for which activity. Clients should also be invited to provide any additional comments on this question. Special attention should be paid in this survey to the needs and concerns of Indigenous Canadians. (#18)
• Status - Completed
  • CRA modified the questions in the client experience survey.

Topic: Transparency and Data

• Recommendation 1st annual report
  • That the Canada Revenue Agency provide and make publicly available relevant data on the DTC, including number of applications, approvals, rejections, and appeals; durations of eligibility by function; and a demographic profile of current beneficiaries by age and gender. (#27)
• Status - Completed
  • In May 2019, the CRA publicly released a set of DTC statistics and subsequently prepared a November 2019 update based on committee comments. These statistics have been updated through 2021 and are available publicly on the CRA website.

Topic: Data (Strategy)

• Recommendation 1st annual report
  • That the Canada Revenue Agency, in partnership with the Department of Finance Canada, Statistics Canada and the disability community, undertake a study of the current data needs regarding the DTC and identification of appropriate new ways of tracking needed DTC information, including the estimated number of Canadians who potentially would be eligible for the DTC but are unable to benefit because of its non-refundable status. (#39)
• Status - Not Completed

Topic: Populations of special consideration (Indigenous)

• Recommendation 2nd annual report
  • That the Canada Revenue Agency provide and make publicly available relevant data on the DTC, including number of applications, approvals, rejections, and appeals; durations of eligibility by function; and a demographic profile of current beneficiaries by age and gender. (#27)
• Status - In progress
  • The CRA has implemented several initiatives to improve awareness of barriers faced by Indigenous Peoples. Indigenous staff have been hired and CRA staff have received cultural sensitivity training.
  • The CRA will work to ensure that staff answering public calls be sensitive to how they respond to inquiries from Indigenous Peoples. In 2019, the CRA opened three Northern Service Centres in Yellowknife, Iqaluit and Whitehorse in order to improve services in the Territories. Staff who field phone calls from area codes in the North have received special training.
  • The CRA plans to hire Indigenous Navigators to complement the services provided by the CRA Navigators who assist DTC applicants with complex cases.
  • The CRA now offers a mandatory training course on unconscious bias to all employees. Furthermore, CRA employees can participate in Indigenous awareness sessions such as Kairos blanket exercises, learning and sharing circles, and events hosted by the Indigenous Employee Network. Additional Indigenous awareness and anti-racism courses are available through the Canada School of Public Service.

Topic: Populations of special consideration (Indigenous)

• Recommendation 2nd annual report
  • That the CRA seek financial authority and obtain funding to support community organizations with strong ties to Indigenous peoples, to engage and assist individuals and communities in their efforts to understand and apply for the DTC and other benefits, once DTC eligibility has been confirmed. (#5)
• Status - Completed
  • The CVITP grant launched in 2021 provides funding to support tax filing and access to benefits and credits. This includes additional funding specifically for Indigenous serving organizations.

Topic: Populations of special consideration (Indigenous)

• Recommendation 2nd annual report
  • That the CRA develop an assessment package, similar to the one used for the Canada Pension Plan application for disability benefits, which speaks to Indigenous peoples and can be:
    • completed by the individual or an assessor, which considers how a person’s disability affects them “all, or substantially all, of the time” or an “inordinate amount of time” confirmed by a designated health care provider and attached to the main application. (#6)
• Status - In progress
  • The CRA is evaluating the existing DTC assessment package to ensure that it is culturally sensitive and responsive to the needs of Indigenous applicants. In doing so, the CRA acknowledges the importance of considering how an Indigenous person's disability uniquely impacts their lives within their specific cultural context.
  • The DTC digital app and Form T2201 redesign also provides clearer information and examples on eligibility requirements.

Topic: Populations of special consideration (Indigenous)

• Recommendation 2nd annual report
  • That the CRA, in consultation with Indigenous peoples and disability organizations, develop mechanisms for collecting data related to age, gender, type of disability similar to other DTC databases, while respecting the confidentiality of the individual and community. Any new DTC application form should include an option for applicants to identify as an Indigenous person, Métis, Inuit or member of a First Nation (status or non-status). (#7)
• Status - In progress
  • The CRA published an Indigenous linkage rate report in collaboration with Statistics Canada. The report indicates the participation rate in the tax and benefits system for Indigenous Peoples using 2021 Census Data and T1 tax data for 2020. The Agency is examining linked data for tax and benefits participation and tax credits uptake of Indigenous communities in Canada.

Topic: Populations of special consideration (regional variations)

• Recommendation 1st annual report
  • That the Canada Revenue Agency, in collaboration with the Province of Quebec, determine a single eligibility process for the DTC in order to avoid separate eligibility at different levels of government. (#35)
• Status - Not Completed
  • CRA has met with Revenue Quebec to discuss the differing eligibility criteria for the DTC and the provincial disability benefit are different, the provincial from cannot be accepted at the federal level. CRA is exploring opportunities to streamline the process for Quebec residents.

Topic: Co-design

• Recommendation 1st annual report
  • That the Canada Revenue Agency consult on a regular basis with selected community organizations to:
    • ensure that all its communications and materials (including letters of correspondence with individuals) are easily accessible by persons with disabilities and are available in plain language. Organizations such as People First can assist with ensuring plain language;
    • determine whether its communications and materials are keeping pace with technological change and with the technologies in common use by communities of persons with disabilities (#25)
• Status - Completed
  • The CRA has consulted with communications advisors and CRA field agents on this recommendation. The Outreach Program and Community Volunteer Income Tax Program continue to work with communications advisors to ensure that all materials are reviewed for plain language and are accessible. Outreach field agents are working with individuals claiming the DTC and disability community organizations to solicit feedback on DTC-related material. Comments on CRA products and services are welcome during all outreach events.

Topic: Communication and accessibility

• Recommendation 1st annual report
  • determine whether its communications and materials are keeping pace with technological change and with the technologies in common use by communities of persons with disabilities. (#25)
• Status - Completed
  • CRA uses writing standards guides in order to write clear and effective language that complies with CRA and Government of Canada standards and best practices. This includes using a content style guide, a plain language guide, and Inclusive writing resources.
  • CRA Outreach also collects feedback from partnering organizations on the information they disseminate about credits and benefits.
  • CRA reviews adaptive technology usability and uses an Accessibility Assessment ToolKit (AATK). The AATK is a web application whose primary purpose is to guide CRA developers and testers in how to assess their Information and Communication Technology (ICT) against a specific set of accessibility standards, and monitor the overall level of accessibility compliance for the Agency's ICT.

Topic: Communication and accessibility

• Recommendation 1st annual report
  • That Canada Revenue Agency web content, which outlines disability tax measures, link to relevant provincial and territorial websites that identify disability-related provisions in those jurisdictions, as well as the range of federal and provincial/territorial disability measures that require DTC eligibility in order to qualify. (#26)
• Status - Completed in May 2022
  • The benefits finder gives Canadians an understanding of eligibility criteria for the DTC but also provides a comprehensive guide to provincial/territorial benefits.

Topic: Communication and accessibility

• Recommendation 1st annual report
  • That the Canada Revenue Agency provide an option for the electronic submission of Form T2201 and related materials that: is convenient and accessible for both taxpayers and tax preparers; and permits submission of those materials at the same time as, or after, the filing of an income tax and benefit return. (#28)
• Status - Completed
  • Phase I of the DTC Digital Application was launched on October 2021; was launched in October 2021 and allowed medical practitioners to complete the form digitally.
  • Phase II, launched in May 2023, allows applicants and medical practitioners to submit their portion of the T2201 using their MyAccount.
• Recommendation 3rd annual report
  • We believe that the CRA should carry out regular accessibility audits of its web pages and public materials. All documents and forms should clearly indicate that they are available in alternate formats.
• Status - Completed in 2020
  • The accessibility of applications is the ability of all Agency clients and employees to access and use the digital systems and tools they need, regardless of ability or disability, this includes:
    • Accessibility Assessment ToolKit (AATK) initiative and the accessibility framework:
      • The goal of the AATK initiative is to track and report on the Agency's progress with respect to compliance with the accessibility standards introduced through recent changes to Canada's accessibility legislation.
    • AATK is just one of several initiatives being lead by the Accessibility Centre of Excellence as part of their accessibility framework for IT systems. Other initiatives include accessibility resources in:
      • Assessment and testing
      • Design and implementation
      • Training
      • Legislation and best practices

Topic: DTC Awareness

• Recommendation 1st annual report
  • That the Canada Revenue Agency, through the Community Volunteer Income Tax Program, which supports voluntary organizations to provide and train volunteers, run community tax clinics and raise awareness about the DTC. There should be a special focus on Indigenous communities. (#31)
• Status - Completed since 2019
  • The CRA has had considerable success in administering and expanding the CVITP. In 2019–2020, the CRA carried out close to 300 outreach activities involving persons with disabilities and their related organizations to raise tax and benefit awareness and to promote the CVITP. More than 950 outreach activities included Indigenous Canadians, and close to 600 of these activities were held in Indigenous communities.
  • The CVITP is hosting free virtual tax clinics by phone and videoconference. Organizations can also submit requests for outreach activities and learn more about the CVITP online through Canada.ca.

Topic: DTC Awareness

• Recommendation 1st annual report
  • That the Canada Revenue Agency raise awareness about the disability supports deduction, including special information sessions to inform disability organizations, post-secondary educational institutions and student networks, unions, employer organizations, training programs and the general public about the availability, purpose and provisions of this tax measure;
  • in collaboration with the disability community, review on an annual basis the list of allowable items within the disability supports deduction to ensure it keeps pace with technological updates and changes. (#40)
• Recommendation 2nd annual report
  • That the CRA: raise awareness about the disability supports deduction, including special information sessions to inform disability organizations, post-secondary educational institutions and student networks, unions, employer organizations, training programs and the general public about the availability, purpose and provisions of this tax measure in collaboration with the disability community, inform the Department of Finance Canada of the need to review, on an annual basis, the list of allowable items within the disability supports deduction, to ensure it keeps pace with technological updates and changes. (#9)
• Status - Not Completed

Topic: DTC Awareness

• Recommendation 2nd annual report
  • That the CRA relay to the Department of Finance Canada our concerns regarding the need to: amend the Disability Supports Deduction to allow the deduction of any form of disability-related technical aid, equipment and service required for education, employment and participation in the community; and study and report on the implications of converting the current Disability Supports Deduction from a deduction to a credit. (#10)
• Status - Not Completed

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That in the determination of DTC eligibility, the CRA ensures that the principle of parity guides its actions with respect to physical and mental functions, including but not limited to, the removal of multiple screens of eligibility for persons with impairment in mental functions (#1)
• Status - Completed in 2021
  • Form T2201 acknowledges, via the following note on the form itself, that problem solving, goal-setting and judgment may be interpreted separately: “A restriction in problem-solving, goal-setting or judgment that markedly restricts adaptive functioning, all or substantially all of the, time, would qualify.”
  • Budget 2021 announced a significant change in the definition of mental functions which, for the most part, was based on DAC recommendations, including disjunctive, rather than conjunctive impairment, in problem solving, goal setting and judgment.

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That the Canada Revenue Agency amend the list of mental functions on Form T2201 as follows: attention; concentration; memory; judgment; perception of reality; problem solving; goal setting; regulation of behaviour and emotions (for example, mood disturbance or behavioural disorder); verbal and non-verbal comprehension; and learning (#2)
• Recommendation 2nd annual report
  • Since the new federal definition of mental functions does not include “learning” as a mental function, it will be important to make clear, in DTC communications and through examples on the Form T2201, that someone with a learning disability may be eligible for the DTC if the learning disability prevented them from engaging in the adaptive activities in everyday life.
• Status - Not Completed

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That the Canada Revenue Agency replace on page 5 of Form T2201 the term "effects of the impairment" with the following:
    • "The effects of the individual’s impairment must restrict their activity (that is, walking, seeing, dressing, feeding, mental functions, eliminating, hearing, speaking or some combination thereof) all or substantially all of the time, even with therapy and the use of appropriate devices and medication." (#3)
• Status - Completed in 2021
  • The CRA has incorporated this recommendation into the redesigned Form T2201.

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That the Canada Revenue Agency delete the reference to "social activities" on page 5 of Form T2201 due to the contradiction on page 3 of the form. Page 5 states that one is ineligible on the basis of social and recreational activity, while page 3 states that the inability to initiate and respond to social interactions makes one eligible, as does the inability to engage in common simple transactions. (#4)
• Status - Completed in 2021. Same as above.

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That the Canada Revenue Agency change the question on page 5 of Form T2201 about the likelihood of improvement to ask health providers whether the individual’s illness or condition that is responsible for the impairment in function, such as walking or cognitive functions, is likely to improve. (#5)
• Status - Completed in 2021. Same as above.
  • It should be noted that, in order to reduce the number of clarification letters sent, the CRA has removed the “Effects of impairment” box and replaced it with two questions asking health providers if their patients are either unable to perform the activity or if it takes them an inordinate amount of time to do so. This recommendation was identified during usability testing.

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That the Canada Revenue Agency no longer interpret all or substantially all as 90% of the time and no longer interpret an inordinate amount of time as three times the amount of time it takes a person without the impairment. (#6)
• Status - Not Completed.
  • This would require a legislative amendment.
  • DTC assessors have had access to the guidelines in the DTC Medical Resource Guide since 2021. The guidelines permit more flexibility in the interpretation of “all or substantially all of the time” by noting that the effects of the impairment must be present and challenging “most of the time” rather than the arbitrary 90% rule.

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That in the DTC assessment process, the Canada Revenue Agency employ the following definition to determine marked restriction in mental functions:
    • "The individual is considered markedly restricted in mental functions if, even with appropriate therapy, medication and devices (for example, memory and adaptive aids):
      • all or substantially all the time, one of the following mental functions is impaired, meaning that there is an absence of a particular function or that the function takes an inordinate amount of time:
        • attention; concentration; memory; judgment; perception of reality; problem solving; goal setting; regulation of behaviour and emotions (for example, mood disturbance or behavioural disorder); verbal and non-verbal comprehension; or learning;
        • or they have an impairment in two or more of the functions listed above none of which would be considered a marked restriction all or substantially all the time individually but which, when taken together, create a marked restriction in mental functions all or substantially all the time; OR
        • they have one or more impairments in mental functions which are: intermittent; AND/OR unpredictable; AND when present, constitute a marked restriction all or substantially all the time." (#7)
• Status - Not Completed.

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That the Canada Revenue Agency remove specific references to activities in the T2201 section on mental functions and include examples of activities in the current Guide RC4064 to help health providers detail all the effects of the markedly restricted mental function(s). (#8)
• Status - Completed in spring 2023.
  • CRA introduced a digital application of Form T2201 that includes multiple examples for each function currently listed on the form. Digital application lends itself to the modification or expansion of materials as required.
  • The DTC electronic application allows for the provision of a substantial amount of information to both applicants and health providers. Multiple drop-down menus in various places provide a more detailed explanation of the specific requirements on the Form T2201.

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That the Canada Revenue Agency consider a child and an adult version of Form T2201, with eligibility criteria tailored as necessary. (#9)
• Status - Completed in May 2023.
  • The digital application was introduced and modulates the questions it asks applicants based on choosing a child or adult option. This minimizes confusion. Page 11 of the T2201 form has 2 columns, 1 adult 1 child.

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That the Canada Revenue Agency revise the list of functions on Form T2201 to the following:
    • vision; speaking; hearing; lower-extremity function (for example, walking); upper-extremity function (for example, arm and hand movement); eliminating; eating/feeding; and mental functions. (#10)
• Status - Not Completed
  • CRA has considered this recommendation and identified a few concerns, notably whether the proposed changes might inadvertently give some applicants the understanding that they were no longer eligible. This proposed list would require an update to the Income Tax Act because the Form T2201 must reflect the wording of the Act. The CRA cannot introduce this change on its own but requires discussions with the Department Finance Canada.

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That the Canada Revenue Agency, in respect of the parity principle, create a list of examples of activities for each impaired function for inclusion in the current Guide RC4064 to help health providers detail all the effects of markedly restricted function(s). (#11)
• Status - Not Completed
  • There is no plan to adopt lower and upper function terminology. Legislative changes were made in Budget 2022 to change the list of functions on the Form T2201.

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That the Canada Revenue Agency review the current eligibility criteria for hearing, which are out of date. (#12)
• Status - Not Completed
  • The CRA has been in discussion with the Canadian Hearing Society and the Canadian Society of Audiologists and revisions to the hearing section of the T2201 form and are being implemented based on their feedback.

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That the Canada Revenue Agency work in collaboration with the Department of Finance Canada to consult with relevant health providers and stakeholders before introducing any legislative changes to the Income Tax Act with respect to the definition of mental or physical functions (#13).
• Status - Completed.
  • This is already taking place as consultation with external stakeholders to CRA is included in the current process.

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That the Canada Revenue Agency replace the current eligibility criteria for life-sustaining therapies as set out in Form T2201 with the following:
    • Individuals who require life-sustaining therapies (LSTs) are eligible for the DTC because of the time required to administer these therapies. These are therapies that are lifelong and continuous, requiring close medical supervision. Without them, the individual could not survive or would face serious life-threatening challenges. Close medical supervision is defined as monitoring or visits, at least several times annually, with a health provider.
    • These therapies include but are not necessarily limited to: intensive insulin therapy for type 1 diabetes; chest therapy for cystic fibrosis; renal dialysis for chronic and permanent renal failure; and medically prescribed formulas and foods for phenylketonuria (PKU). (#14)
• Recommendation 2nd annual report
  • That the Canada Revenue Agency (CRA) replace the current eligibility criteria for life-sustaining therapies as set out in Form T2201 with the following:
    • Individuals who require life-sustaining therapies (LSTs) are eligible for the disability tax credit (DTC) because of the time required to administer these therapies. These are therapies that are life-long and continuous, requiring close medical supervision. Without them, the individual could not survive or would face serious life-threatening challenges. Close medical supervision is defined as monitoring or visits, at least several times annually, with a health provider. These therapies include, but are not necessarily limited to: intensive insulin therapy for type 1 diabetes; chest therapy for cystic fibrosis; renal dialysis for chronic and permanent renal failure; and medically prescribed formulas and foods for metabolic conditions that prevent the safe breakdown of proteins by the liver, including phenylketonuria (PKU) and maple syrup urine disease (MSUD). (#1)
• Status - Not Completed
  • Requires legislative changes.

Topic: DTC Eligibility

• Recommendation 3rd annual report
  • The CRA should replace the current eligibility criteria for life-sustaining therapies as set out in the DTC application (Form T2201) with a designated list of identified therapies. (#4)
• Status - Not Completed

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That the Canada Revenue Agency: consider whether some conditions, such as a complete paraplegia or tetraplegia, schizophrenia or a permanent cognitive disorder with a MOCA below 16, should automatically qualify for the DTC in the way that blindness does. (MOCA is a mental status examination of cognitive functions used commonly to assess impairment that results from conditions such as dementia, head injury or stroke.); and examine the eligibility criteria employed in other federal and provincial/territorial programs, such as the Ontario Disability Support Program and the programs for Canada Pension Plan disability benefits and, veterans disability pensions, to identify the conditions/diagnoses that establish automatic eligibility for those programs. (#15)
• Status - Not Completed
  • The digital application includes diagnosis that lead medical practitioners to a streamlined flow. However automatic eligibility would require a legislative change as eligibility is based on the effects of impairment rather than the diagnosis.

Topic: DTC Eligibility

• Recommendation 1st annual report
  • That the Canada Revenue Agency examine the new eligibility form being used for Canada Pension Plan disability benefits to identify areas in which there might be synergies regarding eligibility for the DTC, such as including the presenting condition or diagnosis as supplementary information to identifying functional limitations. (#16)
• Status - Not Completed
  • Work to be done with Service Canada
  • CRA will address this recommendation alongside recommendation #6 of the second annual report so as to fully address both recommendations.

Topic: DTC Eligibility

• Recommendation 3rd annual report
  • The CRA and the Department of Finance Canada should change the term ‘impairment’ to ‘limitation’ in all DTC-related administrative and legislative documents. (#1)
• Status - Not Completed
  • Form T2201 has included this terminology where possible, however the term "impairment" would have to be changed in the legislation to explore further changes to allow for consistent use of terminology.

Topic: DTC Application Procedure

• Recommendation 1st annual report
  • That the Canada Revenue Agency test or pilot various approaches that would remove the gatekeeper role from health providers. One such approach would be for community tax clinics to take on a screening or advisory function. Another would be to establish a CRA call centre explicitly for this function. (#17)
• Status - Completed
  • The CRA is working to establish a framework that will include the responsibilities of a newly proposed navigator role. The CRA continues to support its Community Volunteer Income Tax Program and the investment in this program has increased in order to expand its reach, particularly among organizations serving Indigenous peoples and organizations representing persons with impairment in mental functions.
  • An enhanced phone line was introduced for contact centre agents to consult directly with Navigators for answers to more complex questions related to the DTC that they are unable to resolve. If the taxpayer’s query is not resolved by the contact centre agent, a Navigator will either speak to the taxpayer at the time or the taxpayer will receive a callback within two business days.

Topic: DTC Application Procedure

• Recommendation 3rd annual report
  • Decisions to expand the pool of health providers, one provider group at a time, who can complete the DTC application form (T2201) take time and expertise that neither CRA nor the Department of Finance Canada possess. (#2)
  • That neither the CRA nor Finance decide which health provider can complete the form for which functions but rather let the licensed scope of practice of a health provider guide which functions they will assess on behalf of the DTC applicant (#2)
• Status - Not Completed
  • Eight medical practitioner types are still classified, with some able to designate any condition, while others are limited in what they can designate.

Topic: DTC Application Procedure

• Recommendation 1st annual report
  • That the Canada Revenue Agency develop a process for expanding the list of health providers with the appropriate expertise who can assess eligibility for the DTC. (#19)
• Recommendation 3rd annual report
  • Any licensed health provider, whose license is in good standing, be permitted to complete the DTC application (Form T2201). (#3)
• Status - Not Completed
  • Requires legislative changes.

Topic: DTC Application Procedure

• Recommendation 1st annual report
  • That in the case of determining DTC eligibility for persons with impairment in mental functions, the Canada Revenue Agency include relevant specialized health providers, including, but not limited to, psychiatrists and psychologists, in the review process when applications are disallowed. (#20)
• Status - Completed
  • All applications denied the DTC involving impairment in mental functions are sent for secondary review by a CRA officer not involved in the initial decision.
  • Following legislative amendments, CRA provides training to assessors. CRA continuously monitors and addresses areas of concern.

Topic: DTC Application Procedure

• Recommendation 1st annual report
  • That the Canada Revenue Agency:
    • copy to the applicant all clarification letters sent to the health provider; let the health provider know that all communication to a health provider about an applicant will be copied to the applicant and that any communication the health provider submits to CRA will also be made available to the applicant;
    • encourage the health provider to contact and consult the applicant as necessary when providing any clarification to the CRA;
    • and extend the time for a health provider to file a clarification letter with the CRA from 45 to 60 days and note this timeline on the first page of the questionnaire. (#21)
• Status - Completed
  • The redesign of Form T2201 resulted in a reduction in the number of clarification letters.
  • Phase II of the digital DTC application was launched in May 2023. The digital application uses tick boxes. It also uses the information on file to prepopulate some of the questions for applicants.

Topic: DTC Application Procedure

• Recommendation 1st annual report
  • That the Canada Revenue Agency: provide in notice of determination letters a relevant reason as to why a DTC application was denied; include in notice of determination letters a copy of the clarification letter and the health provider’s clarification response. This information is vital in case of an appeal; and move the consumer survey request to the bottom of the notice of determination letters. (#22)
• Status - Completed
  • In February 2023, CRA reviewed all letters to be in plain language, improve readability and assessibility. The notice of determination letters provide a reason as to why a DTC application was denied. A completed clarification letter/questionnaire is provided to applicants upon request.
  • The web address for the client experience survey appears at the bottom of the notice of determination.

Topic: DTC Application Procedure

• Recommendation 1st annual report
  • That the Canada Revenue Agency cap the fee that consultants can charge to assist with an initial DTC application and act as expeditiously as possible to draft the regulations introducing this cap. (#36)
• Status - In progress
  • On June 1, 2019, the federal government posted the Disability Tax Credit Promoters Restrictions Regulations in the Canada Gazette, Part 1. These regulations set a maximum fee that a promoter can accept or charge to assist with a DTC request.
  • The proposed Disability Tax Credit Promoters Restrictions Regulations would establish the maximum fee that a promoter can accept or charge in respect of a DTC application as:
    • $100 for a DTC application made for a determination of DTC eligibility; and
    • $100 per taxation year for a DTC application in respect of a deduction for an individual or for a dependant or in respect of any deduction or overpayment of tax under the Income Tax Act that is contingent upon DTC eligibility for that individual or for a dependant.
  • The Disability Tax Credit Promoters Restrictions Act remains inoperative until regulations are enacted to set the maximum fee. The notice in the Canada Gazette sought feedback on the proposed regulations. Comments and concerns were to be analyzed by the CRA and the act modified as required.

Topic: DTC Application Procedure

• Recommendation 1st annual report
  • That the Canada Revenue Agency reimburse an applicant or provider at a reasonable rate in accordance with the provincially recommended fee for the time involved in responding to CRA clarification letters in support of a DTC application or reassessment. (#37)
• Status - Completed
  • This cost is offset by the ability to claim medical expenses and on a case by case reimbursement under Jordan's Principle. CRA is collaborating with ESDC to fully implement this recommendation.

Topic: DTC Application Procedure

• Recommendation 1st annual report
  • That the Canada Revenue Agency provide dedicated support to ensure call centre agents are accessible and have the expertise to answer enquiries related to the DTC form and eligibility. (#30)
• Status - Completed
  • Navigator role introduced 2021.
  • Navigators are trained to handle complex DTC enquiries.
  • CRA is considering making DTC navigators more easily accessible by using an online request form similar to the request a liaison officer, which is available for businesses.

Topic: DTC Review and appeals

• Recommendation 1st annual report
  • That the minister of national revenue review the current appeals process with a view to creating a straightforward, transparent and informed process where the applicant has access to all relevant information (including the precise reason their application was denied) and documents (including copies of all information submitted by health providers that pertain to their application). (#23)
• Status - Completed
  • All documents related to an individual file are available to the applicant upon request.

Topic: DTC Review and appeals

• Recommendation 1st annual report
  • That the Canada Revenue Agency include a document (one-page, two-sided information sheet) entitled “Your Rights When a Notice of Determination Denies a Claim for the DTC” that would:
    • explain the requirements, timelines and details for filing the following:
      • review;
      • notice of objection with the Appeals Branch; and
      • notice of appeal with the Tax Court of Canada;
      • inform taxpayers that other persons (that is, family members, friends or professional advisors) can act on their behalf by submitting Form T1013, Authorizing or Cancelling a Representative, or writing a letter;
      • inform taxpayers that they have access to all documents in their files, including a copy of the follow-up questionnaire and any clarification letter completed by the health provider;
      • inform taxpayers that they can contact the CRA for a copy of Pamphlet, P148, Resolving your dispute: Objection and appeal rights under the Income Tax Act, if they do not have access to the Internet; and
      • provide the correct contact information and mailing addresses for the submission of any required materials. (#24)
• Status - Completed
  • March 2023: DTC notice of determination was changed to better articulate how Appeals process may impact eligibility for gateway benefits

Topic: DTC Review and appeals

• Recommendation 3rd annual report
  • CRA to share DTC appeals data with the Committee to better understand which demographic groups are experiencing challenges.(#5)
• Status - Completed in 2023.
  • The Appeals data was shared with the Disability Advisory Committee.

Topic: DTC Review and appeals

• Recommendation 3rd annual report
  • The CRA should better communicate to DTC applicants who launch an objection or appeal, that they will remain eligible for all DTC-related benefits and credits until the appeal is resolved. (#6)
• Status - Completed in March 2023.
  • The letters were updated to inform applicants that an appeal or objection does not impact prior DTC-related benefits for which they were eligible.

Topic: Gateway DTC & Other Benefits

• Recommendation 1st annual report
  • That the Canada Revenue Agency revisit and restate the purpose of the DTC in order to reflect its multiple roles. (#32)
• Status - Not Completed

Topic: Gateway DTC & Other Benefits

• Recommendation 1st annual report
  • That the minister of national revenue work with the minister of families, children and social development to ensure that individuals are able to keep all contributions they made to, and any and all grants and/or bonds they may have received for, their registered disability savings plan for periods during which they qualified for the DTC. (#33)
• Status - Completed
  • Following Budget 2019, RDSPs need no longer be closed when a beneficiary ceases to qualify for the DTC. As of March 2019, financial institutions that issue RDSPs are not required to close a RDSP solely because the RDSP beneficiary is no longer eligible for the DTC.

Topic: Gateway DTC & Other Benefits

• Recommendation 1st annual report
  • That, as a short-term measure, the federal government should ensure continued eligibility for related DTC-gateway programs, at least at the federal level, even if DTC eligibility has been revoked. This interim measure would allow for the development of secondary screening processes to determine whether individuals or households can continue to remain eligible for gateway-related services and supports. (#34)
• Status - Not Completed
  • This recommendation is not within CRA’s scope.

Topic: Gateway DTC & Other Benefits

• Recommendation 1st annual report
  • That the minister of national revenue work collaboratively with the minister of finance, the minister of families, children and social development, and the minister of sport and persons with disabilities to:
    • identify ways of addressing the disproportionate poverty of Canadians with disabilities, or alternatively, that the minister of national revenue request the establishment of a parliamentary committee to address this issue and bring forward recommendations;
    • transform, as a first step, the current DTC from a non-refundable credit into a refundable credit in order to recognize the non-itemizable costs incurred by lower-income Canadians with disabilities; and
    • ensure that the poverty alleviation of Canadians with disabilities is a focus of all relevant federal-provincial/territorial ministers’ meetings and that there be no provincial/territorial clawback of any new or improved federal measures. (#38)
• Status - In progress
  • Work is underway to address this recommendation.

Topic: Gateway DTC & Other Benefits

• Recommendation 2nd annual report
  • In light of the decision to eliminate the requirement to close an RDSP when a beneficiary no longer qualifies for the DTC, the federal government should pay retroactively the RDSP grant and bond portions for which an RDSP holder might be eligible. (#2)
• Status - Not Completed
  • This recommendation is not within CRA’s scope.

Topic: Gateway DTC & Other Benefits

• Recommendation 2nd annual report
  • The federal government set up an advisory body, consisting of RDSP applicants and account holders, to resolve long-standing concerns and to address emerging issues with respect to the RDSP and its interface with the DTC. To help address complex issues such as legal capacity, the advisory body should include or consult regularly with selected organizations representing persons with disabilities. (#3)
• Status - Not Completed
  • This recommendation is not within CRA’s scope.

Topic: Legal Issues Deductions

• Recommendation 1st annual report
  • That the Canada Revenue Agency: amend the disability supports deduction to allow the deduction of any form of disability-related technical aid, equipment and service required for education, employment and participation in the community; and
  • study and report on the implications of converting the current disability supports deduction from a deduction to a credit. (#42)
• Status - Not Completed
  • No further submissions to the Department of Finance Canada were made.

Topic: Legal issues, supports deduction

• Recommendation 2nd annual report
  • That the CRA forward to the Department of Finance Canada for their consideration the following items to be added to the disability supports deduction list:
    • ergonomic work chairs
    • bed-positioning devices for work
    • mobile computer cart for sit/stand work at home
    • alternative input devices (keyboards/ mice)
    • digital pens
    • navigation devices for low vision
    • memory or organizational aids to assist someone with a brain injury or problems with executive function
    • trained and certified service animals to enable participation in education, training or work (#8)
• Status - Not Completed
  • Work is underway to address this recommendation.

Topic: Legal representative procedure

• Recommendation 3rd annual report
  • The Department of Finance Canada should amend the Income Tax Act (ITA) and/or the CRA amend its policy, to allow a person with a mental disability to appoint a representative to manage their tax affairs without resorting to legal guardianship. This objective can be achieved by:
    • adding “supported decision-maker” to the enumerated legal representatives in the definition of legal representatives in s. 248(1) then adding a new section to the Income Tax Act that sets out the procedure for appointing a supported/supporting decision-maker; or
    • revising the policy applying to the appointment of an “authorized representative” such that it applies to people who may not meet the current capacity requirements to carry out this process. (#7)
• Status - Not Completed
  • This recommendation is not within CRA’s scope.

Topic: Supported decision-making

• Recommendation 3rd annual report
  • Over the long-term, the federal government should apply the Peace, Order and Good Government clause to encourage the creation of a national minimum-standard legislative framework for supported decision-making laws. (#8)
• Status - Not Completed
  • This recommendation is not within CRA’s scope.

Topic: Home sale

• Recommendation 3rd annual report
  • The CRA encourage the Department of Finance Canada to exempt DTC beneficiaries from the capital gains on the sale of a home entrusted to them. (#9)
• Status - Completed
  • Bill C-47, which received Royal Assent in 2023, addresses this issue.

Topic: RDSP / legal rep

• Recommendation 3rd annual report
  • The federal government broaden the list of persons defined as “qualified family member” in the ITA to include siblings to act as RDSP plan holders for persons with mental disabilities. (#10)
• Status - Completed
  • Bill C-47, which received Royal Assent in 2023, addresses this issue.

Topic: Employment

• Recommendation 1st annual report
  • That the Canada Revenue Agency take steps to raise awareness among employers about any tax measures that provide incentives for hiring persons with disabilities and/or that help offset any of the costs of accommodation. (#41)
• Status - In progress
  • The CRA is working to creating a product that will  include all relevant information directed towards employers regarding incentives for hiring persons with disabilities (this includes tax measures to help offset costs of accommodation)

Appendix D

The ASE Community Foundation for Black Communities with Disabilities DAC Data feedback

Research by the ASE Community Foundation for Black Canadians with Disabilities revealed that Black Canadians with disabilities are disproportionately impacted by poverty. Black Canadians experience higher poverty rates than any other racial or ethnic group in Canada^{Footnote 1}. This is compounded by the fact that Black Canadians with disabilities are more likely to experience barriers to accessing services and resources that can help mitigate the impact of poverty. Black Canadians with disabilities often face discrimination and barriers when accessing the social determinants of health (healthcare, education, and employment opportunities). This can lead to an erasure of their experiences, and a cycle of poverty that is difficult to break out of.

The DTC is one means by which to support Black Canadians with Disabilities who are experiencing poverty, however critical disaggregated by race and ethnicity on the DTC is currently not available. Collecting and publicly sharing DTC data disaggregated by race and ethnicity will provide much means by which to measure and understand Black Canadians with disabilities have access and experiences with the DTC. Without this data, it is difficult to identify the specific barriers experienced by Black disabled Canadians and develop targeted and coordinated approaches to poverty reduction. More specifically, this data will inform targeted outreach and engagement strategies to increase awareness and uptake of DTC in the Black community.

Recommendations

1. That the CRA, works with consultations led by Black disabled people and communities and across government ministries to gather and provide DTC data disaggregated by race and ethnicity
2. That the CRA, with consultations led by Black disabled people and communities, develop mechanisms for collecting data related to race, ethnicity, immigrant status, age, gender identity, type of disability similar to other DTC databases; while respecting the confidentiality of the individual and community, while not using this data for surveillance purposes. Any new DTC application form should include an option for applicants to identify by the demographic categories stated above.

Appendix E

Overview of non-participation in the DTC in Quebec, reflections and recommendations
By Guillaume Parent
Director, Centre d’expertise Finances et handicap
May 1, 2023

Overview of the situation

Quebec is significantly behind in obtaining the federal disability tax credit (DTC) compared to the Canadian average. In 2021, 13.9% of all individuals who received the DTC were Quebec residents, while 22.5% of the total Canadian population lived in that province. One might think that the coexistence of two identical measures from two different tax systems might explain this discrepancy, but that is not the case. In fact, 197,520 Quebecers obtained the DTC in 2021, whereas 123,567 were eligible for its Revenu Québec equivalent, the amount for severe and prolonged impairment.

The statistics compiled by the Canada Revenue Agency for the year 2021 show us that, regardless of how claimants are classified (age, limitation and duration), Quebec has a generalized delay of greater or lesser significance depending on the various classifications. When we look more closely at the proportion of claims accepted from Quebec residents per claims contributed to the national totals, we can see the following trends:

The proportion of DTC holders decreases with age

The proportion of DTC holders decreases with age

The proportion of DTC holders varies significantly depending on the limitation

The proportion of DTC holders varies significantly depending on the limitation

The proportion of DTC holders who must be renewed over time is lower in Quebec.

The proportion of DTC holders who must be renewed over time is lower in Quebec.

In a context where the federal government increasingly uses the DTC as the sole eligibility criterion for many programs for people with disabilities and their families, we believe that it is becoming a priority, out of concern for effectiveness and fairness, to look into the causes of these discrepancies and to consider solutions to reduce them.

Explanation for the discrepancies

A study published in 2023 by sociologist Normand Boucher et al of Université Laval, [translation] “Perceptions and knowledge of people with disabilities in Quebec in regard to tax measures,” identifies a “triangle” of barriers to compensatory taxation that seem to be more prevalent in Quebec:

Explanation for the discrepancies

Explanation for the discrepancies

Above all, an emotional process

One might think that the DTC application remains logical, transactional, and countable; like filing your tax return every year.  However, it is quite the opposite. It seems that disability and money do not mix well, as the popular expression goes. It made people uncomfortable

[Translation] In addition to personal and social-economic factors, there is an element that is often neglected or even rarely addressed in tax literature: the perception of disability, which seems to lead to an attitude of rejection or distancing that also reveals all the identity issues related to this concept.

Declaring yourself or your child “disabled,” especially to seek financial support, is very difficult for many and is similar to the act of begging. Some people may perceive this as applying a significant label to themselves.

It is difficult to say with certainty that this perception is more present in Quebec than in the rest of Canada. However, it can be argued that the French term “handicapé” seems harsher than its English equivalent “disabled.” In fact, several seniors to whom we have responded in recent years did not necessarily consider themselves disabled even though, in our opinion, they clearly met the DTC requirements. In their opinion, they were just “old.” Thus, their state of health did not justify going to “bother” their doctor to attest to their disability. Remember that “old Quebecers” claim the DTC three times less often than their counterparts in the other provinces. Moreover, we note that various movements in Quebec seem to want to distance themselves, whether consciously or not, from the concept of disability.

These emotional obstacles, coupled with a lack of knowledge of the DTC mechanisms and awareness of its importance for the financial security of individuals, seem to largely explain the non-participation of adults who would be eligible for the DTC. This trend would be greater in disabilities that are considered “invisible” or less obvious. Unfortunately, without being able to determine this more precisely, our intuition is that this majority is not going to the next step, namely, downloading form T2201 and making an appointment with their health professional.

Access difficulties and a lack of involvement from health professionals

The participants in this research indicate a lack of access to health professionals who can attest to their disability through form T2201. Finautonome, which provides the public with a DTC help line, notes the same problem. This is not unrelated to the widespread and growing difficulty of accessing a family physician in Quebec.

Even if it does not explain everything, this cause becomes logical when we look at the decreasing trend of DTC holders with age. In fact, in the Quebec health network, medical follow-up is much more intensive for children. In Quebec, participation in the DTC is highest in this age group.

Fairly regularly, we note that some claimants who had access to a health professional encountered reluctance from the professional to complete and sign form T2201:

[Translation] It is certain that in the current context of the health care system, accessibility to public services is severely tested in Quebec. In addition, it sometimes seems that the physician’s input is not enough to properly complete the required forms because of a lack of knowledge regarding the person’s problem; and the manner in which they are completed is a determining factor in access to a measure such as the DTC.

• Knowledge of the file too limited (little history with the patient, high turnover of professionals consulted);
• Minimization of the effects of impairment, especially for less obvious (or invisible) disabilities;
• Reluctance to complete the section on the cumulative effects of the impairment;

In some cases, we even heard about a physician who did not fill out the T2201 because he thought it was unnecessary for his patient who did not pay tax!

Cost of applying for the DTC vs perceived benefits

When the benefits of a program request process are seen as significant enough to complete the entire process, the Quebec population tends to ask for more help. This is also what happens with requests for social solidarity by adults who have a severely and permanently limited capacity for employment. Indeed, according to the Maytree report on the state of social assistance programs in Canada in 2022, 42.5% of last-resort assistance recipients had their severe and permanent limitations certified in Quebec, compared to an average of 55.6% in the four largest provinces. Even if there is still discrepancy, it remains smaller than the discrepancy observed in the DTC claim.

There is widespread belief in Quebec that, for people who do not pay taxes, the DTC provides no benefit or, worse, it might reduce the amount of social solidarity benefits. However, we know that this belief is false because the DTC gives access to a basket of measures, including the Registered Disability Savings Plan, and the DTC is transferable to a family caregiver. This belief has been reinforced for many years by a system of social solidarity, for which the details are poorly understood.

For some participants in Normand Boucher’s study, [translation] “their path in life and especially their sometimes precarious living conditions meant that the use of tax measures did not appear to be a priority, especially because they had little immediate effect on improving these conditions.” When we know that doctors can charge fees ranging from $50 to $400 to fill out the T2201, we understand why many people do not complete it.

Furthermore, as was pointed out earlier, the cost is not just monetary. This emotional process for many brings stress and a time investment that makes it difficult to fit into the already overloaded daily lives of people with disabilities and their families.

Recommendations

It is becoming urgent to reduce the discrepancies between the various populations in regard to access to the DTC. In a context where this tax credit determines eligibility for the RDSP or access to one-time benefits, such as during a pandemic, Quebecers, like other segments of the Canadian population, are unwittingly forgoing hundreds of millions of dollars, which return to the state coffers.

Demedicalize the process

The first step would be to recognize that the health professional should no longer be the sole gatekeeper since:

• The new definition in the Accessible Canada Act advocates a social model of disability rather than a medical one;
• Access to health professionals is limited, especially for adults;
• We no longer consult the same health professional for several years;
• Involvement in completing the T2201 is very unequal from one professional to another and causes frustration.

Recommendation 1: Pilot a project with volunteer commissioners for attestation

Sworn and specially trained volunteers could gather testimonies from those who feel that their state of health makes them eligible for the DTC. They could thoroughly document the file, especially with testimonies from those around them, so they can complete form T2201. Random posteriori checks could be conducted by CRA staff.

This method has several advantages:

• It is more proactive in approaching certain priority communities (Francophone, rural, from ethnic or Indigenous communities);
• It simplifies the language used;
• It is less intimidating for applicants who are uncomfortable with the medical environment.

This recommendation could be implemented in conjunction with the following recommendation.

Recommendation 2: Allow social workers who are members of a professional order to complete the T2201

In the adult disability field in Quebec, there are an increasing number of social workers on the front line of care. Not only are the members of this order authorized to complete psycho-social assessments that are used by the court to establish protective supervision, but they are involved in assessing needs for services to ensure home support for people with disabilities or seniors. Logically, they should be authorized to sign the T2201.

Adapt terminology and recognize equivalent programs
Recommendation 3: Rename the DTC

We should recognize that this measure is more than a simple tax credit, it is a gateway to other programs. In that same vein, it should be recognized that the French term “handicap” is no longer consistent with the image we have of the target population. To start a discussion, we therefore propose a label along the lines of [translation] “Recognition of a severe and prolonged functional limitation.”

Recommendation 4: Study the points of convergence between the eligibility criteria for provincial programs and the DTC to recognize equivalencies and, ultimately, adopt a standard from Accessibility Standards Canada

There are too many programs, which can make having to apply to each of them discouraging. Many programs have eligibility criteria that is similar to or more restrictive than the DTC. Just in Quebec, we can list:

• The amount for a severe and prolonged impairment
• The supplement for children with disabilities
• Tutorship to adults
• The basic income program
• The Retraite Québec disability benefit
• etc.

In an ideal world, harmonization of eligibility criteria would be a major step forward. However, reflection on a framework of standards could influence the design of eligibility criteria for existing and future programs. Such a standard could aim for fairer and more predictable access to programs. This would meet one of the objectives of Accessibility Standards Canada, which is to promote access to programs.

Demonstrate agility
Recommendation 5: In partnership with the Department of Finance and Employment and Social Development Canada, set targets for reducing discrepancies in participation in the DTC and RDSP for Quebec and for under-represented populations. Review the action plan for this at regular intervals.

We are aware that a situation where there is no difference between the participation rate for the DTC in Quebec (and in other under-represented segments) and that of the national average will be difficult to achieve given that some causes seem deep and complex.

However, access and fairness issues are too important to allow these discrepancies to increase and persist. These discrepancies disproportionately affect the poorest segment of an already vulnerable population.

Since they can be an integral part of the national poverty reduction plan, objectives to reduce these discrepancies should be ambitious in terms of both percentage and speed.

Appendix F

Additional information on data

Data for some of the analyses mentioned in the Fourth Annual Report comes from Statistics Canada. Specifically, two data sources were used: the 2017 Canadian Survey on Disability (CSD), and T1 Family File (T1FF) tax records. This appendix details the data sources, linkage and methodological limitations with using this data.

• 1. Description of the Data

As part of the United Nations Convention on the Rights of Persons with Disabilities, Canada collects data to estimate the population of Canadians with disabilities, in an effort to facilitate full participation in society for those individuals. Data is collected which identifies the types of disabilities, social and economic supports and barriers, as well as sociodemographic information on individuals. Using a linkage to income tax filings, detailed data reported to the Canada Revenue Agency can be used for economic analysis instead of self-reported income categories. These datasets are detailed below.

• a. Canadian Survey on Disability

The primary means of collecting disability population data is through the Canadian Survey on Disability, which is a national survey that is a follow-up to the Census of Canadians. Details of this survey can be found in the Concepts and Methods Guide published by Statistics Canada, and are summarized here^{Footnote 2}. On the long-form Census, questions were asked regarding daily activity restrictions that have lasted or are expected to last six or more months as of the Census date of May 10, 2016. These filter questions, if answered affirmatively, provided the base population for inclusion in the CSD surveying sample, which numbered approximately 50,000 individuals. Estimation domains were created by province of residence, age brackets, with sampling strata for each created by estimated severity of disability and location of residence within a province (non-remote or remote). Internet and telephone-based questionnaires were then sent to respondents. The response period was March through August 2017. The response rate was 69%, with higher response rates for older respondents and those living in Quebec, Manitoba, Ontario, and Nova Scotia.

Individuals first responded to specific Disability Screening Questions (DSQ) to determine disability status. These questions, developed by Statistics Canada and Employment and Social Development Canada (ESDC), looked at ten different conditions: hearing, vision, mobility, flexibility, dexterity, pain, learning, mental health, memory and developmental disabilities. A combination of “how much difficulty do you have…” (intensity of difficulties) and “how often are your daily activities limited by…” (frequency of difficulties) determined whether one was deemed to have a disabling condition. Those who were affirmed to have a disability fully completed the rest of the survey.

Severity of disability was constructed using the DSQs, with increasing severity based upon intensity of difficulty, frequency of difficulty, and cumulative effects across the ten conditions. These totals were then calculated as a standardized score, with the average of the ten scores calculated as a global severity score. These scores were then categorized into mild, moderate, severe, and very severe severity levels^{Footnote 3}.

Follow-up questions were then asked related to assistive devices, education, employment, and several other question modules. Derived variables were created and some census sociodemographic variables were linked to the CSD. Respondents were age 15 or older as of the Census in 2016, lived in private dwellings, and did not include those residing on First Nations reserves^{Footnote 4}. Data was population weighted.

• b. T1 Family File

Tax filing data was provided to Statistics Canada by the Canada Revenue Agency. Statistics Canada then assembled the data into a file with income and tax credits provided as variables. The unit of observation is per individual per tax filing year. Data is provided from 2015 through 2017, though to match with information collected from the CSD, only data from 2017 is used. This way, a DTC claim made in 2017 overlaps data on a disability from the 2017 CSD.

Approximately 75% of all Canadians of all ages filed taxes in 2017 and would be included in the set of data. The analyses are adjusted by population weights, as used in the CSD dataset, to meet Statistics Canada guidelines for release of results. If any variable is present for a tax filing year, the individual is considered to have filed taxes.

DTC certificate approval – the population of whom would then be eligible to make a DTC claim on tax filings – was noted for each of the categories for which there may be a marked restriction: walking, mental functions, dressing, feeding, eliminating, hearing, speaking, vision, and life-sustaining therapy. If at least one of those categories had an accepted DTC status, then an individual was considered to have applied and been approved for a DTC certificate. If an individual had no accepted categories and only rejected categories, then an individual was considered to have applied and been rejected for a DTC certificate. If an individual had no accepted or rejected statuses, then an individual was considered to have not applied for a DTC certificate.

For the Annual Report, only data on the disability amount claimed by an individual is used. This information is derived from line 316(00) of the T1 form. An individual was deemed to have claimed the DTC if there is a positive amount listed in the T1FF file. This would indicate that an individual received some financial benefit from the DTC in a tax year. Eligible individuals who claimed zero are deemed not to have received any financial benefit from the DTC.

• c. Linkage

As noted by Statistics Canada, a Linkage of the 2017 Canadian Survey on Disability (CSD) to select T1FF data and Disability Tax Certificate (DTC) holders (011-2021) was completed with the following rationale:

“The federal personal income tax system recognizes the additional costs borne by persons with disabilities and provides tax relief to this population through several tax expenditures (e.g., the Disability Tax Credit (DTC)). However, due to the specific eligibility criteria of these measures, using them as proxies for identifying persons with disabilities in tax data may underestimate this population in Canada. On the other hand, while the Canadian Survey on Disability (CSD) may allow a better identification of persons with disabilities, it contains few details on the disability benefit programs such as the DTC. Using these two data sources separately limits the ability to study the impacts of federal income tax expenditures on persons with disabilities^{Footnote 5}.”

Details on the linkages themselves (tying together individual CSD records with the same individual’s tax records) and how they are completed are not publicly available outside of the Regional Data Centres which house this data. Anonymous identifiers were created by Statistics Canada to assign observations to specific individuals in both sets (the CSD and T1FF). These anonymous identifiers were then linked to tie together the original CSD data with the T1FF dataset.

• 2. Using linked data related to the disability tax credit

While these data sources are the most detailed data currently available to describe population level characteristics of persons with disability in Canada, the use of these data, and interpretation of results from analysis, must occur with several cautions. Below we note some of the methodological issues and limitations from these data:

• a. Sample selection

While the sample is based on a census population, participation in the CSD is voluntary so there is some potential for bias in the sample. Other selection issues are the absence of information for persons living on-reserve First Nations, youth, and those in institutions – all of whom might claim the DTC but would not appear in this dataset.

The data provides information for the population defined as having a disability by Statistics Canada, and from there determines who could potentially access the DTC. The aim is not to explain the demographic characteristics of all DTC claimants. These statistics are provided by the CRA webpage and can be noted as the authoritative source of information for the sociodemographics provided in the tables within^{Footnote 6}. Those numbers would include disabled populations who, though receiving the DTC, were omitted from the CSD.

For these analyses, only a sample of those who matched the CSD had T1FF data linked. We do not have information on all DTC applicants or recipients in a given year, as analysis instead focused on those for whom we could get more detailed information on their underlying disability.

• b. Self-reported data

The information in the CSD is self-reported and has not necessarily been medically validated by a clinician, and hence does not directly meet the eligibility criteria laid out by the CRA for applying for the DTC certificate.

Though self-reported, Statistics Canada has tested the data, in association with ESDC, in an effort to minimize error and produce a validated measure.  The DSQ at the start of the CSD serves as a filter from the Census daily activity restriction questions, removing from the sample individuals who may have had a limitation that does not meet the threshold of disability.

• c. Different definitions of disability between the CRA and Statistics Canada

It should also be noted that there are distinctions between the definition of persons with disability as defined by the CSD and the DTC. The CSD uses the DSQ, which follows the social model of disability and requires that a limitation in daily activities be reported for the identification of a disability – the presence of a difficulty alone is not sufficient. Of this population, we focus on those who have a severe or very severe disability only when considering eligibility for the DTC, with severity defined above. However, DTC eligibility requiring a medical practitioner certify a severe and prolonged impairment in one functional category or significant limitations in two or more categories, or receive therapy to support a vital function, will differ from the CSD population. The two definitions are unlikely to be 100% correlated. In using the population that is defined as severe or very severe within the CSD, we anticipate an underestimation of the full CSD population that would be eligible for the DTC. Both definitions, though, seek to identify individuals who have functional limitations in their daily lives. The categories, though different (speech issues are included explicitly in the DTC; pain in the CSD), overlap significantly.

In the absence of any disability registry or other population level data sources for persons with disability in Canada, despite limitations, this data provides an important perspective on how policies and programs align with population level needs.

• d. The 2017 CSD is the most recent survey with linked tax data available for this report

Statistics Canada runs the Canadian Survey on Disability every five years. The most current survey with data is 2017. The most recent survey was completed in 2022. However, survey data as of the time of the Fourth Annual Review is still being aggregated, validated, and prepared for analysis by Statistics Canada. Preliminary analyses (such as prevalence of disability in Canada) will not be released by Statistics Canada until December 2023. The microdata that make up the 2022 CSD is unlikely to be released for analysis until 2024. Once available in Statistics Canada Regional Data Centres, we will strive to update analyses involving CSD data.

No information has been provided for timing of availability of linkages of 2022 CSD data with T1FF data. Data was not made available for the 2017 CSD/T1FF data until late 2021, nearly four years after the CSD survey was completed. Similar timing issues for the 2022 CSD linked to the T1FF might arise if timing of data releases and linkages is similar to the 2017 cycle.

There are few other data sources collected by Statistics Canada that provide large-scale information on disability. Labour Force Surveys do not collect information on disability status. The Canadian Community Health Survey, which can also be linked to T1FF data, includes questions only on activity limitations, and does not have the level of detail that the DSQs provide. The Census (2021) asks about activity limitations on daily living, but does not ask respondents about DSQs. The CRA tracks the number of DTC applicants and DTC claims, but that is only for individuals who access this support.

Data for the T1FF is provided from 2015-2017. We used 2017, as a) 2017 T1FF data would be associated with 2017 CSD survey, so a better tie between disability status and DTC claims can be made, and b) rates were similar between years (with a slight increase in DTC uptake and acceptance rates in the three year period).

• e. Limited information on families or claimants on behalf of persons with disabilities

There are certain limitations to the data which must be noted when interpreting analyses. In addition to selection issues and the definition of disability mentioned earlier, another aspect is the lack of family information. The linkage of CSD and tax records was specific only to the individual with a disability. We do not have economic or census family information on taxes. As a result transfers of DTC that occur between family members – spouses or qualified dependents – are not tracked^{Footnote 7}. This potential discrepancy between beneficiaries (people who are entitled to receive the DTC) and claimants (people who make a claim for the DTC on a tax filing) may result in underestimated DTC utilization calculations.

Though claims involving the DTC might be slightly off due to transfers, this would likely not impact whether a person with a disability received a DTC certificate. As noted in the statistics, more than three-quarters of those who receive a DTC certificate end up claiming the DTC. This number may be slightly higher when transfers are taken into consideration. However, the proportion of those with a disability having a DTC certificate is less than half. This number is not adjusted by any transfers that may occur.

Information on DTC certificate acceptance or rejection is assumed to be accurate for the specific disabled individual. It is assumed that DTC certificates are for individual filers and not for family members. The accepted DTC certificates noted likely represent both single and multi-year certificates: there were only a couple cases of DTC claims with no DTC certificate accepted, and DTC acceptances were for all basic activities of daily living restrictions.

• f. Population level of analysis

The analysis presented is not intended to identify individuals who claim or don’t claim the DTC, or who receive or don’t receive the DTC certificate. These statistics also are not meant to lead to a pathway to contact specific qualifying individuals to get them to potentially apply for a DTC certificate and/or claim the DTC. These statistics are instead intended to identify which population groups might have higher or lower-than-average application rates for the DTC certificate or utilization of the DTC. This is a reason for including numbers on people with disabilities who do not file taxes, or do not claim the DTC.

Further research into which groups are realizing benefits and which groups, though eligible, are not realizing potential benefits, is highly encouraged. Leveraging other datasets such as the Census, internal ESDC or CRA administrative data, or other surveys conducted by Statistics Canada, is one step that can be taken to help answer these questions.

It is noted that eligibility and DTC claim processes are legislated. This is acknowledged, with the caveat that if further federal efforts to improve wellbeing rely on the attainment of a DTC certificate, there remains a need to maximize take-up for those who are eligible but not applying.

Appendix G

Committee Members

The DAC is made up of  a total of 13 members, including 2 co-chairs and 1 Vice-chair. It includes professionals from various fields, such as health professionals, lawyers, accountants, and tax professionals, as well as advocates of the disability community, representatives of Indigenous communities, and persons with disabilities.

The Committee is currently co-chaired by Sharon McCarry, Founder and Executive Director, La Fondation Place Coco, and by Gillian Pranke, Assistant Commissioner, Assessment, Benefit, and Service Branch, Canada Revenue Agency. Jonathan Lai serves as vice-chair.

The Committee members whose work produced this report are:

• Sharon McCarry, Co-chair of the Committee, La Fondation Place Coco, residing in Quebec
• Gillian Pranke, Co-chair of the Committee, Assistant Commissioner with the Canada Revenue Agency, residing in Ontario
• Jonathan Lai, Vice-chair of the Committee, Autism Alliance of Canada, residing in Ontario
• Brendon Pooran, PooranLaw Professional Corporation, residing in Ontario
• Dr. Olaf Kraus De Camargo, McMaster University, residing in Ontario
• Dr. Marie-Hélène Chomienne, University of Ottawa, residing in Ontario
• Janean Marshall, Educator at MI’kmaw Kina’matnewey and Saint Francis Xavier University, residing in Nova Scotia
• Guillaume Parent, Finandicap, residing in Quebec
• Dr. Jennifer Zwicker, Social Policy and Health at the School of Public Policy, residing in Alberta
• Dr. Emile Tompa, Institute for Work & Health, residing in Ontario
• Liza Arnason, Arnason Consulting, residing in Ontario
• Dr. Jennifer Chalmers, clinical and community psychologist, residing in British Columbia
• Dr. Laura Housden, family nurse Practitioner, residing in British Columbia

Committee member biographies
Disability Advisory Committee members

Appendix H

Federal Measures for Persons with Disabilities

Disability tax credit

The disability tax credit (DTC) is a non-refundable tax credit that helps individuals with disabilities or their supporting individuals reduce the amount of income tax they may have to pay. To be eligible for the DTC, an individual must have a severe and prolonged impairment in physical or mental functions, as defined in the Income Tax Act, and has to be certified by one of the following medical practitioners:

• medical doctor;
• nurse practitioner;
• optometrist;
• audiologist;
• occupational therapist;
• physiotherapist;
• psychologist; or
• speech-language pathologist.

Eligibility is not based on a diagnosis, but rather on the effects of the impairment on the ability to perform the basic activities of daily living.

Once the individual with a disability is eligible for the DTC, they may claim the disability amount of $8,870 (for 2022). If the individual qualifies for the disability amount and was under 18 years of age at the end of the year, they may claim an additional supplement of up to $5,174 (for 2022).

A supporting individual or the spouse or common-law partner of the eligible individual with a disability may be able to claim all or part of an unused disability tax credit.

Registered disability savings plan

A registered disability savings plan (RDSP) is a savings plan intended to help parents and others save for the long term financial security of a person who is eligible for the disability tax credit (DTC).

Contributions to an RDSP are not tax deductible and can be made until the end of the year in which the beneficiary turns 59. Contributions that are withdrawn are not included as income to the beneficiary when they are paid out of an RDSP. However, the Canada disability savings grant (grant), the Canada disability savings bond (bond), investment income earned in the plan, and the proceeds from rollovers are included in the beneficiary's income for tax purposes when they are paid out of the RDSP.

The grant is an amount that the Government of Canada pays into an RDSP. The Government will pay a matching grant of 300%, 200%, or 100%, depending on the beneficiary’s adjusted family net income and the amount contributed. Up to $3,500 in matching grants can be paid into an RDSP in one year, and up to $70,000 over the beneficiary’s lifetime. A beneficiary’s RDSP can receive a grant on contributions made until December 31 of the year in which the beneficiary turns 49.

The bond is an amount paid by the Government of Canada directly into an RDSP. The Government will pay a bond of up to $1,000 a year to low-income Canadians with disabilities. No contributions have to be made to get the bond. The lifetime bond limit is $20,000. A bond can be paid into an RDSP if an application is made on or before the end of the year in which the beneficiary turns 49.

Amounts paid from a registered retirement savings plan or a registered retirement income fund upon the death of an annuitant

If an individual was a financially dependent child or grandchild of the deceased annuitant or member who depended on a annuitant or member because of an impairment in physical or mental functions, they may contribute to their registered retirement income fund (RRIF) any amounts they receive or are considered to have received from a deceased annuitant’s or member’s:

• registered retirement savings plan (RRSP);
• pooled registered pension plan (PRPP); or
• specified pension plan (SPP).

An individual can roll over the proceeds of a deceased annuitant’s or member’s RRIF, RRSP, registered pension plan, SPP or PRPP to the registered disability savings plan of a financially dependent child or grandchild who has an impairment in physical or mental functions.

Medical expense tax credit

The medical expense tax credit is a non-refundable tax credit for individuals who have sustained significant medical expenses for themselves or certain of their dependants.

These expenses include a wide range of products, procedures, and services, such as:

• medical supplies;
• dental care; and
• travel expenses.

An individual may claim the total of the eligible expenses minus the lesser of the following amounts:

• $2,479 (for 2022);
• or 3% of the individual’s or dependant’s net income for the year (in respect for whom the credit is claimed).

Certain medical expenses have to be certified by a medical practitioner. Medical practitioners include a wide range of individuals in the medical profession, such as doctors, pharmacists, and nurses.

Refundable medical expense supplement

The refundable medical expense supplement is a refundable tax credit available to working individuals with low incomes and high medical expenses. An individual may be able to claim this credit if all of the following conditions apply:

• they made a claim for medical expenses or for the disability supports deduction;
• they were resident in Canada throughout the year; and
• they were 18 years of age or older at the end of the year.

They must also meet the criteria related to income.

Disability supports deduction

The disability supports deduction provides tax relief for individual taxpayers who have paid for certain medical expenses to enable them to do one of the following:

• be employed or carry on a business (either alone or as an active partner)
• do research or similar work for which the taxpayer received a grant; or
• attend a designated educational institution or a secondary school at which the taxpayer is enrolled in an educational program

Only the individual with the disability can claim this deduction.

There is a list of the specific types of expenditures that will qualify for the disability supports deduction. In many cases, a medical practitioner must prescribe the particular device, equipment or service, or must certify that the individual requires the device, equipment or service because of their impairment.

Attendant care and care in a facility

You can claim amounts paid to an attendant only if the attendant met both of the following criteria:

• They were not your spouse or common-law partner
• They were 18 years of age or older when the amounts were paid

An attendant who is hired privately will probably be considered an employee.

Canada caregiver credit

You may also be able to claim the CCC if one or more of the following individuals depend on you for support because of a physical or mental impairment:

• your (or your spouse's or common-law partner's) child or grandchild
• your (or your spouse's or common-law partner's) parent, grandparent, brother, sister, uncle, aunt, niece, or nephew (if they resided in Canada at any time in the year)

An individual is considered to depend on you for support if they rely on you to regularly and consistently provide them with some or all of the basic necessities of life, such as food, shelter and clothing.

Students with disabilities

Certain education-related benefits that require an individual to be a full-time student, such as the scholarship exemption, may be claimed by a part-time student if they meet one of the following criteria. The student:

• is eligible for the DTC for the year; or
• has an impairment in physical or mental functions, and a medical practitioner has certified in a letter that the impairment would not reasonably allow the student to be enrolled full-time.

Business expenses for employees with disabilities - related modifications

Business owners can deduct expenses they incur for eligible disability-related modifications made to a building in the year paid to them, instead of adding them to the capital cost of the building.

Eligible disability-related modifications include changes made to accommodate wheelchairs, such as:

• installing hand-activated power door openers
• installing interior and exterior ramps
• modifying a bathroom, an elevator, or a doorway

They can also deduct expenses paid to install or get the following disability-related devices and equipment:

• elevator car-position indicators (such as braille panels and audio indicators)
• visual fire-alarm indicators
• listening or telephone devices for people who have a hearing impairment
• disability-specific computer software and hardware attachments.

In addition, they may be able to deduct expenses for disability-specific computer software and hardware attachments.

Disability-related employment benefits

If a business owner is providing benefits or allowances to an employee who has a disability, such as transportation costs or attendant services, the benefits may not be taxable.

Reasonable transportation costs between an employee’s home and work location (including parking near that location) are not taxable if paid to them or for an employee to whom either of the following applies:

• is legally blind
• has a severe and prolonged mobility impairment, which markedly restricts the individual’s ability to perform a basic activity of daily living–generally, someone who is eligible to claim the disability tax credit

These transportation costs can include an allowance for taxis or specially designed public transit and parking that provide or subsidize for these employees.

Business owners may have employees with severe and prolonged mental or physical impairments. If the business owners are providing reasonable benefits for attendants to help these employees perform their duties of employment, these benefits are not taxable for the employee. The benefits can include readers for persons who are blind, signers for persons who are deaf, and coaches for persons who are intellectually impaired.

Payroll deductions

A disability-related employment benefit excluded from income is not a taxable benefit. Do not deduct Canada Pension Plan contributions, Employment Insurance premiums, or income tax.

Reduce the EI premium rate if providing employees with a short-term disability plan

Some employers provide a wage-loss replacement plan for short-term disability to their employees. If the plan meets certain standards established by the Employment Insurance Regulations, the employer’s EI premiums could be paid at a reduced rate (less than 1.4 times the employee’s premiums).

To benefit from a reduced employer premium rate, register with the EI Premium Reduction Program.

Appendix I

Disability Measures Linked to Disability Tax Credit Eligibility

• Disability tax credit (DTC) (being eligible for the DTC can open the door to other federal, provincial, or territorial programs)
• DTC child supplement
• Child disability benefit
• Medical expense tax credit
• Canada workers benefit
• Child care expenses deduction
• Students with disabilities
• Home Accessibility Tax Credit
• Home accessibility expenses
• Home buyers’ plan
• Home buyers’ amount
• Registered disability savings plan
• Qualified disability trust
• Disability-related employment benefits

 

Appendix J

Form T2201, Disability Tax Credit Certificate

• English (PDF, 86 KB)
• French (PDF, 90 KB)

Appendix K

Resources on Language and Disability

1. Canadian Association of Broadcasters (PDF, 306 KB)
2. Guideline Diversity and Disability
3. Text standards
4. UBC Tool kit on inclusive language
5. Audience and Diversity
6. OCAD is part of Ontario research and Design hub
7. No word for disability in AU
8. Disability is a colonial construct U of Waterloo

Appendix L

Factsheet – Indigenous Peoples

Appendix M

Updated Tables for the DTC Statistical Publication - PDF versions

• Table 1: Number of individuals with a DTC certificate by province/territory and restriction, 2021 (PDF, 137 KB)
• Table 2: Number of individuals with a DTC certificate by province/territory and age group, 2021 (PDF, 129 KB)
• Table 3: Number of individuals with a DTC certificate by province/territory and duration, 2021 (PDF, 100 KB)
• Table 4: Number of individuals with a DTC certificate by duration, age group and restriction, 2021 (PDF, 196 KB)
• Table 5: Number of individuals with a DTC certificate by gender and age group, 2021 (PDF, 93 KB)
• Table 6: Number of individuals with a DTC certificate by gender and marital status, 2021 (PDF, 95 KB)
• Table 7: Number of individuals with a DTC certificate by duration and restriction, 2021 (PDF, 93 KB)
• Table 8: Number of individuals with a DTC certificate by gender, age group, and restriction, 2021 (PDF, 206 KB)
• Table 9: Number of individuals with a DTC certificate by gender, age group, and marital status, 2021 (PDF, 127 KB)
• Table 10: Number of individuals with a DTC certificate by age group, Province/Territory and restriction, 2021 (PDF, 553 KB)
• Table 11: Number of DTC determination by BADL, 2012-2021 (PDF, 190 KB)
• Table 12: Number of DTC claimants benefitting through a tax reduction by BADL, 2012-2021 (PDF, 121 KB)
• Table 13: Number of DTC utilization by BADL, 2012-2021 (PDF, 114 KB)
• Table 14: Number of DTC claimants benefitting through a tax reduction by net income range, 2012-2021 (PDF, 116 KB)