Lessons Learned: A Review of the Disability Tax Credit; Part I

There's much going on and so much wrong in the world today, that it's hard to even know where or how to start. In all honesty, right at the moment, I'm finding it hard to move off the couch after my daily date update with Justin.

But life (more or less) goes on and for the past few months I've wanted to update a topic we haven't discussed in quite a while - the Disability Tax Credit ("DTC"). When we first discussed the DTC in 2007, I explained how and why it's so much more than just a tax credit and I would recommend refreshing your memory on that. 

Not only does the DTC give a nice size tax credit to an individual with a "profound impairment" resulting in them being "markedly restricted" in any of the basic activities of daily living {"ADL"), it is the gateway to access other federal tax programs and benefits, such as the Registered Disability Savings Plan ("RDSP") and the Child Disability Benefit (a supplement to the Child Tax Benefit).

The full eligibility requirements for the DTC can be found here.

Bottom line; the DTC can be extremely important for you and your children (as applicable).

However, the DTC is notoriously hard to receive and unfortunately, that situation has only worsened over the past few years.

Only 40 per cent of the more than 1.8 million people who live with severe disability in Canada use the federal disability tax credit (DTC). And the mind-numbing rules devised by the Canada Revenue Agency to assess eligibility for the credit are likely one of the main reasons for such poor uptake.

That’s the conclusion of a recent review of the credit by the University of Calgary’s School of Public Policy, which also cites low awareness of the credit and limited understanding of its potential benefits as possible causes for low participation rates.

In fact, the situation is so bad that many who should qualify don't even bother to apply.

Although the wording of the eligibility requirements set out in the legislation hasn't changed significantly, the way those provisions are being interpreted by the CRA have become so tight that they verge (and often cross the line into) ridiculous.

In 2019, a government panel tasked with examining the federal tax measures offered to Canadians with disabilities made several recommendations to improve the DTC situation for Canadians.

To state, as the Panel did in the "2019 First Annual Report of the Disability Advisory Committee: Enabling access to disability tax measures – Report in brief" that "receiving the credit can often be an uphill battle that requires navigation of a complex set of requirements in the application phase" is a huge understatement.

One of the recommendations made was that the CRA change the requirement that a person must have a "severe or prolonged impairment" that restricts an activity of daily living that is present “all or substantially all the time.” An applicant will be considered "markedly restricted" in at least one of the ADL if "all or substantially all the time", he or she cannot (or takes an inordinate amount of time to) do one or more of the basic ADL.

This is where it gets interesting - although the legislation does not specify a percentage to define "all or substantially all of the time", the CRA in its infinite wisdom has decided that a  person must be markedly restricted at least 90% of the time, something that has NO basis in law.

The 90 per cent interpretation is problematic for those with mental disorders and for those with disorders that are characterized by episodic symptoms,” said Dr. Karen Cohen, co-chair of the committee.

There were numerous other recommendations, including that the CRA make the application form more readable and offer a second review when a claimant with long-standing eligibility for the credit is suddenly rejected. A summary of all the recommendations can be found here.

Now that we have reviewed the importance and challenges involved with the DTC, in my next post we will look at the appeal process and the lessons I recently learned in successfully appealing the decision that my adult daughter longer qualified for the DTC.

* You can learn more about other tax measures for individuals with disabilities here.

The Disability Tax Credit ... Tales from the Disability and Estate Planning Seminar

I sincerely hope everyone reading this knows (or at least thinks they know) about the Disability Tax Credit (DTC).

It gives a nice size tax credit to an individual with a "profound impairmant" resulting in them being "markedly restricted" in any of the basic activities of daily living. It can be used by the taxpayer (to offset their taxable income) OR transferred to another "supporting" relative, such as a spouse (or, in the case of a child under the age of 18 years, to a parent or guardian).

If you're not familiar with this tax credit, please contact Canada Revenue Agency and ask them about it. And do not be discouraged if you are told that it is very hard to qualify for or that based on what you have told them, it wouldn't apply. Maybe yes, maybe no... Ask them to send you a T2201 Form (a form which both the taxpayer and the disabled individual's physician must fill out) anyway or download it from the website. When the form comes, take it to the person's doctor (or specialist if available) and see what they think.

But here are a few additional points that even the 'knowing' may not realize:

• even if the disabled person is living indepedently (ie. in a group home or other supported living situation), you may well still be able to claim the DTC. This will turn on a question of fact; namely whether or not the taxpayer is in a "supportive" relationship with the disabled individual. This can include such things as whether or not you buy them clothes occasionally, take them on trips with you or whether they come to spend a few days with you when they are ill.
• when you do apply for the DTC, keep in mind that it can be back-dated, not just to the date of the individual's diagnosis but for up to 10 (ten) years. Think about it, many types of disabilities are life-long, from birth, even if they weren't diagnosed until much later.
• If you are the parent or other supporting relative of a child with a disability under the age of 18 years and you're already claiming the DTC, check last year's Income Tax Return or pick up the phone and call CRTC and make sure that you are claiming not just the DTC but also the "child disability" portion of the credit. This will take the tax credit from roughly $6,000 to $10,000.
• Did you know that a learning disability may be sufficient to qualify a person as eligible for the DTC? Although I had heard a few comments here and there on the subject, it was mostly news to me. And if you have one child with more severe physical or mental challenges for whom you are already claiming the DTC, it may not have even occurred to you to think about this for a second child with a learning disability (guilty as charged).

And don't forget, the DTC not only gives the taxpayer a good-sized (and much appreciated) tax credit, it also has a very positive effect on the monthly Child Tax Benefit (what we use to know as "Family Allowance") as a "child disability benefit supplement" will be added to the monthly cheque for each child who has been accepted for the DTC. Even if your family income disqualifies you from receiving the Child Tax Benefit, you can still qualify for the child disablity benefit supplement if you are claiming the DTC for the child. And any move from no monthly cheque to a monthly cheque has got to be a good thing!

If you have not applied for the Child Tax Benefit for your child, but have already filed Form T2201, complete and mail Form RC66, Canada Child Benefits Application, to your tax centre. The CRA will determine whether or not you are eligible for the Child Tax Benefit and the Chid Disability Benefit supplement.

This child disability benefit supplement came into effect in 2003, meaning that if you get your child accepted for the DTC now or in the future, there should be a lovely retroactive effect to your Child Tax Benefit.

As a general note, I would suggest you check out this page to see what else persons with disabilities can claim as a deduction or a credit. You should also check out the Medical and Disability - Related Information - 2006 Guide.

**With grateful acknowledgment to Mr. Ken Pope and the Nova Scotia Downs Syndrome Society for 'bringing him to town'.

Update: And remember that any legal fees you incur as a result of qualifying yourself or you dependant for the DTC are generally tax-deductible. Which means that if you find yourself running into difficulty with the CRA, hiring a lawyer to do the job may not be such a bad idea.

Update II: For more info on this subject, search the labels appearing at the bottom of this post.

'Getting It Right The First Time' ~ Applying For The Disability Tax Credit

We've discussed the Disability Tax Credit numerous times on this blawg and there's no doubt that it's a powerful financial benefit for the disability community. As noted previously,

It gives a nice size tax credit to an individual with a *** "profound impairment" resulting in them being "markedly restricted" in any of the basic activities of daily living. It can be used by the taxpayer (to offset their taxable income) OR transferred to another "supporting" relative, such as a spouse (or, in the case of a child under the age of 18 years, to a parent or guardian).

As it turns out, an individual must also receive, or at least be eligible for this credit in order to be eligible to set up a Registered Disability Savings Plan.

Unfortunately, as many may know, sometimes applying for this credit can be a frustrating and time-consuming experience. The good news is that Doug, at the RDSP Blog has posted a guest post by Doug Lagasse of Ken Lagasse Inc., Chartered Accountants which not only sets out some of the challenges of applying for the Disability Tax Credit but also lays out what you can do to increase your chances.

So go read it. I highly recommend it.

*** Prior to 2005, the above was the required wording in order to be eligible for the Disability Tax Credit. After 2005, the requirments were changed somewhat and can be found here.

New Tax Credit for 2007 Tax Year

While this won't do you any good for your 2006 taxes, I've just learned that there is a new federal tax credit for a Children's Fitness Amount for 2007, with a special little bonus attached for children with disabilities.

You can claim to a maximum of $500 per child, the fees paid in 2007 that relate to the cost of registering your or your spouse or common-law partner’s child in a prescribed program of physical activity. The child must have been under 16 years of age at the beginning of the year.

And it appears that, unlike the Nova Scotia tax credit, the organization does not have to be registered or approved by government in order for you to claim the fees. It's only necessary that the activity meet the relevant definition.

But what's this special bonus for children with disabilities, you ask?

Children with disabilities – If the child qualifies for the disability amount and is under 18 years of age at the beginning of the year, an additional amount of $500 can be claimed provided that a minimum of $100 is paid on registration or membership fees for a prescribed program of physical activity.

That's right, Virginia, there is a Santa Claus ... if you're eligible for the maximum amount of the tax credit ($500), you can claim double that amount if your child qualifies for the disability tax credit. And even if you're not eligible for the full amount ($500), you can still claim an additional $500 credit provided your child qualifies for the disability tax credit and you spent $100 on fees for a prescribed program of physical activity.

And note that while the regular tax credit is only available for children under the age of 16 years, the extra credit for children with disabilities is available to children under the age of 18 years.

More on Learning Disabilities and the Disability Tax Credit

You will recall a previous discussion about the ability to claim the Disability Tax Credit for a person with a learning disability. Well, I just came across June 2007 document authored by the Canadian Psychological Association entitled "Eligibility of Persons with Impairments in Mental Functions for the Disability Tax Credit: What Qualified Persons Need to Know about Attesting to Eligibility" that deals with the learning disability issue a little more.

In recommending that ‘thinking, perceiving and remembering’ be replaced by the ‘mental functions necessary for everyday life’, we defined the functions as memory (simple instructions, basic personal information, material of importance and interest), problem-solving, goal-setting and judgement, and adaptive functioning. Adaptive functioning includes those abilities related to selfcare, health and safety, social skills and common simple transactions. In this way, any disorder related to mental functions which is severe and prolonged and restricts the mental functions necessary for everyday life as defined above, would obviously be eligible (e.g. affective and anxiety disorders, learning disabilities) and not just those defined by disturbances in thinking, perceiving and remembering (e.g. head injury, major mental illnesses, dementia).

No impairment, be it physical or mental, is ineligible for the DTC on the basis of a diagnosis alone: It is very important for qualified persons to keep in mind that there is no disorder of mental function which renders a person categorically ineligible for the DTC. Although it may be the case that some disorders may be, by their nature, less likely to result in a marked restriction in mental functioning as defined by the DTC than are other disorders, the CRA does not rule out eligibility on the basis of the type of disorder alone. For example, many persons with learning disabilities will not have a sufficiently marked restriction in the mental functions necessary for everyday life, as defined by the DTC, to qualify for the credit. However, if someone had a learning disability, attested to by the qualified person, that created a marked restriction in mental function (e.g. the learning disability was so severe that the person could not manage money sufficiently well to make a simple purchase or could not navigate streets signs to travel to a new location) then the person should be considered eligible for the credit.

So remember this, don't let anyone (including a CRA employee) tell you categorically that learning disabilities do not qualify for the Disability Tax Credit. It is the severity of the learning disability that will be the deciding factor, not the fact that is is a learning as opposed to some other type of disability.

Disability And Estate Planning Seminar For Parents And Families

Wow!

What more can I say?
An absolutely fabulous seminar put on by the Down Syndrome Society today. Kudos and many thanks to the Society for bringing in Mr. Kenneth Pope, an Ottawa lawyer who has a nation-wide practice devoted to trusts and disability issues.

I thought I knew most of this stuff. I really did!
Well, it turned out I knew some, but by no means, it all.

With discussions on

• the Child Disability Benefit portion of the Child Tax Credit;
  
• the Disability Tax Credit [did you know that you might well be able to claim it for a child with a learning disabiltity?];
  
• the Child Supplement to the Disability Tax Credit;
  
• the Caregiver Credit;
  
• ways to increase the Provincial benefits for your child over age 18 if he continues to reside at home with you);
  
• Henson Trusts [the particular type of trust you need to use to leave monies to your child in your Will if you don't want provincial benefits clawed back];
  
• what type of Life Insurance on your life will be most beneficial to your disabled child after your death; and
  
• the new Registered Disability Savings Plan

well, let's just say that Mr. Pope just gave me months of blogging material!

Personally, I've just learned about quite a few tax credits I haven't been claiming [both for one of my children and my mother]. And that I can now go back and open up for those claims, where appropriate, for the past ten years. Among many other things.

So stay tuned. There should be very some interesting stuff coming your way.

Update: For those that missed this great seminar, there is an upcoming "Disability Tax Credit Information Session" being offered at the IWK Health Centre in Halifax, NS, on Wednesday, November 13, 2007. Its being offered as part of a "Health Professionals: Lunch and Learn" series between 12-1:30 that day and later in the evening between 7:00 -8:30 as a "Parent Session". The speaker will be a representative from the Canada Revenue Agency.

As good as the "Disability and Estate Planning Seminar"??
I seriously doubt it. But if you missed the boat, so to speak, there does appear to be another canoe leaving the dock next month.

The Caregiver Credit ... Tales from the Disability and Estate Planning Seminar, Part II

Continuing yesterday's discussion of taxation credits for individuals with disabilities and their families...

If your child with a disability is over the age of 18 years and lives with you, you may be eligible to claim the Caregiver Tax Credit (Line 315 on your Income Tax Return). This is in addition to the Disability Tax Credit (DTC) which we discussed yesterday. In this situtaion, you are claiming the DTC as transferred from the individual with disabilties (assuming that they will not need to use it to offset their own tax payable). The Caregiver credit, however, is not transferred from the person with a disability; this credit belongs to the parent/caregiver.

The amount of the Caregiver credit is based on the income of the person with disabilties. As the disabled person's income exceeds $13,700, the amount of the credit will start to reduce.

One thing to keep in mind about the Caregiver credit is that you might want to broaden your view from just that of your disabled child. For example, if you have an elderly parent who has been "dependent on you due to mental or physical infirmity" and they have spent a week or two living in your home (perhaps after being discharged from the hospital), you might be able to claim the Caregiver credit there as well. In fact, as I understand it, it may not even be necessary for the person to have lived with you at all through the year, as long as they are in some sort of de facto dependency situation with you.

From reading the CRA website, it appears that the person does not need to even qualify for the DTC in order for the Caregiver credit to be claimed. In fact, the website appears to read that if the person is "your or your spouse or common-law partner's parent or grandparent, born in 1941 or earlier" you can qualify for the credit, without the person actually being "dependent on you due to mental or physical infirmity". Its reproduced here below. Read it yourself and see what you think.

One rather important issue here, however...

READ THE REST

**With grateful acknowledgment to Mr. Ken Pope and the Nova Scotia Downs Syndrome Society for 'bringing him to town'.

Press Release - 2011 Federal Budget Recognizes More Needed for People with Disabilities and Families

FOR IMMEDIATE RELEASE

June 6, 2011, Toronto – ON. The Federal Budget tabled today before the House of Commons recognizes that more needs to be done to support people with disabilities and their families. CACL’s President Bendina Miller welcomed the budget measures and expressed: “Today’s budget takes modest steps to address the needs of people with disabilities and their families. It recognizes that: families and caregivers are at the core of supports to persons with disabilities and that more needs to be done to support them in this role; improvements are needed to the RDSP to ensure people with intellectual disabilities are able to enjoy equal benefit of the savings mechanism without jeopardizing their legal capacity; and, that new investments are needed to address the long-standing exclusion of people with intellectual disabilities from the labour market.”

CACL is encouraged by the inclusion of disability issues in this Federal Budget and is hopeful these new investments are first steps in developing a more comprehensive national disability strategy. In particular, the Federal Budget commits to:

• Enhanced support for families and caregivers through:

o a new Family Caregiver Tax Credit, a 15-per-cent non-refundable credit on  an amount of $2,000
o removing the limit on the amount of eligible expenses that caregivers can claim under the MedicalExpense Tax Credit
o a Children’s Arts Tax credit – with an enhanced component for children eligible for the Disability Tax Credit.

• Improving Labour Market Outcomes

o A $3billion investment over 6 years for new Labour Market Agreements to address gaps and improve labour market outcomes for under-represented groups.

• Improving the Registered Disability Savings Plan (RDSP) by:

o Increasing withdrawal flexibility for those with shortened life expectancies.
o Conducting a 3-year review to address issues raised by Canadians with disabilities and their families including a specific recognition of contract/legal capacity issues some adults with disabilities have encountered in trying to open and manage a RDSP.

“Employment is a major issue for people with intellectual disabilities. Something isn’t right when employment rates for working-age adults with intellectual disabilities are one-third of the employment rate of people without disabilities and when the average income for working age adults with intellectual disabilities who are working is less than half of that of Canadians without a disability. Canada needs to take a serious look at how to improve inclusive labour market outcomes for people with intellectual disabilities. This Budget is one step in that direction.” said CACL Executive Vice President, Michael Bach. “CACL looks forward to working in partnership with the Government of Canada in realizing these new investments and identifying the next steps to build strategically on these investments.”

About the Canadian Association for Community Living

The Canadian Association for Community Living is a Canada-wide association of family members and others working to advance the human rights and inclusion of persons of all ages who have an intellectual disability. CACL’s federation is comprised of 10 provincial and three territorial associations, 420 local associations and over 40,000 members.

For more information, please contact:
Michael Bach, Executive Vice-President, 416.209.7942, mbach@cacl.ca

Anna MacQuarrie
Director, Policy and Programs
Canadian Association for Community Living
Kinsmen Building, York University
4700 Keele Street
Toronto, ON M3J 1P3

Tel: 416-661-9611 ext 204
Fax: 416-661-5701
amacquarrie@cacl.ca
www.cacl.ca

The Tax Man Cometh ...

How do I know for sure?

By the number of Google hits for topics like the RDSP, RESPs for children with special needs and the Child Disability Tax Credit ... can it be backdated and are individuals with Aspergers and learning disabilities eligible to receive it, of course.

So while I contemplate my own income tax situation, I thought I would leave you with a few easy links:

• Learning disabilities and the Disability Tax Credit and the Caregiver Tax Credit(scroll down the linked page to see content below this post);
  
• The Henson Trust (always a popular query);
  
• The RESP for the child with special needs;
  
• The ever-popular RDSP (most definitely still a 'work in progress' in Nova Scotia); and
  
• Guardianship (an apparently popular search item of late)

Happy browsing, paper shuffling, hair-pulling and tax filing.

And may I suggest you try one of the computer-assisted* forms of making it through agony of tax season.

*No, I don't get paid to advertise their product. I just happen to like it.

Update: Article - Year 2007 Tax Benefits for Parents of Children with Learning Disabilities

Lessons Learned; Appealing a Denial of the Disability Tax Credit [Part II]

In the last post, we looked at some of the many issues surrounding the eligibility requirements for the Disability Tax Credit ("DTC") and I promised to discuss the DTC appeal process, including some lessons I recently learned in successfully appealing the denial of my daughter's re- application for the DTC.

However, before doing that, I would like to discuss some of the tricks the CRA has been using to deny eligibility in the first place, hoping that arming you with this additional information might well help you be more successful in either your initial application or any required appeal.

Even though the actual eligibility requirements haven't changed, the interpretation of those provisions have become significantly tighter such that CRA agents are now imposing stipulations not prescribed by the legislation. Put another way, the CRA is (and one must wonder if intentionally) making errors in law. After all, it's not like these issues haven't been previously brought to its attention. Many. Many. Times.

There was the 2017 issue with respect to the eligibility of applicants with Type 2 diabetes:

Last May, the CRA told its staff not to honour claims for the disability tax credit. The agency had concluded that Type 1 diabetics were not using 14 hours of their time each week to manage their insulin therapy, which was the minimum required in the agency’s view.

Once disability advocates learned of that move and went public, the CRA promised to revert to the previous clarification letter (basically meaning they " took it back") and agreed to review all denied applications dating back to the date the revised rule was put in place.

Then there are the CRA guidelines* that require that impairment due to mental illness be present continuously for 90 per cent of the time. In addition to the fact that the 90% figure is found only in the CRA policy and has no basis in law, the very nature of mental health disabilities means it is often “temporary, episodic and changing in nature, with symptoms varying in severity and duration over the course of peoples’ lives”. Sadly, data from the fiscal year 2016 to 2017 showing a 53% increase in the number of rejections of applications from people living with mental illness is no surprise.

Being Proactive with More Difficult Applications

Applying (or re-applying) for the DTC involves having the relevant medical practitioner** provide the required information in the T2201 form. Although this process mostly involves checking off
affirmative or negative responses and filling in a few blanks, there are some places for additional information to be wrote in.

Don't let the fact that the T2201 form states that "working, housekeeping, managing a bank account, and social or recreational activities are not considered basic activities of daily living. Basic activities of daily living are limited to walking, speaking, hearing, dressing, feeding, eliminating (bowel or bladder functions), and mental functions necessary for everyday life" deter you. Ignore and carry on.

For individuals with obvious severe disabilities, the form,itself, should likely be sufficient. However, depending on the extent of the challenges faced, you might want to consider having the medical practitioner send along an additional letter or report with the application form.

As we all know, some disabilities are much recognizable and relatable to the uninitiated than others. For this reason, it is wise to proceed with a little more care if (for example) the applicant has a learning disability or a  number of smaller impairments in many activities of daily living ("ADL"). The challenges brought about by some disabilities take more time and detail to fully explain and in other situations, although the level of impairment in any particular ADL might not meet the required degree of impairment, often the cumulative effects in all areas of daily living might qualify as a "significant restriction"(the equivalent of being markedly restricted in one basic ADL).

In such situations, I recommend you book an additional or lengthier appointment with the medical practitioner so you can provide additional information (both for the benefit of the medical practitioner and the CRA) as to the extent of the effects of the individual's daily functioning. We're looking for practical examples of how the individual's particular challenges affect their day-to-day living as that information is critical when it comes to meeting the eligibility requirements.

A few very important things to remember here:
Before doing this, make sure that you have taken the time to compile in written form  the details you want to provide; although you will verbally pass this information on to the medical practitioner, you want to make sure you don't miss anything and you never know which piece of evidence might be sufficient to break the CRA's back.

Depending on the extent of the individual's challenges and insight, it might well be worthwhile to compile this list with the help of the individual and have them participate in the appointment. Although the process of getting these practical examples from my adult daughter often felt like "pulling teeth", with perseverance and persistence, we were able to provide the psychologist with an impressive list of practical effects that she had no other way of knowing, even as the "treating professional".

Further, be aware of the language used in any such written material - perfectly normal words such as "could", "might" or "should" can and will be relied on by the CRA to deny eligibility. That's part of the reason why real-life examples of how the challenges impact the person's daily life are so critical - it totally reduces the need for speculation (which can and will be used against you).

Stay tuned for a further detailed discussion of the DTC appeal process and the pitfalls to avoid.

* Note that "guidelines" do not have the legal force of law. To be valid, regulations, "guideline" and "policy" cannot contradict the enabling legislation.

** The appropriate medical practitioner will be a medical doctor, nurse practitioner, optometrist, audiologist. occupational therapist, physiotherapist, psychologist or speech-language pathologist, depending on the disability involved; however, whenever possible I recommend using the most specialized professional in the relevant field (for example, it is better to use a neurologist than a family doctor).

PLAN Announces New Online Courses

FEATURE WORKSHOP - TAX TIPS
Wednesday, February 6, 2008
PLAN Office, Vancouver, BC

Chartered Accountant Eric Fielden will share his expertise with families. He will explain the Disability Tax Credit, the Medical Expense Tax Credit, the Caregiver Tax Credit, and discuss Tax Planning including RRSPs, RESPs and the new Registered Disability Savings Plan.


I. TAX TIPS WORKSHOP
Date: Wednesday, February 6, 2008
Time: 7pm - 9pm (PST)
Location: PLAN office: Suite 260-3665 Kingsway, Vancouver, BC
Cost: $60.00/Individual $90.00/Couple (CDN)

Click here to register online.

Register early! Registration is limited to 12 participants so that all questions can be answered.

For more information or to register by phone, call: 604.439.9566
or email: inquiries@plan.ca

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II. PLANNING TO SECURE A GOOD LIFE

Planning for the future changes the present. Join Pat Tesan, parent and family leader, for a one-hour telelearning conversation that will explore the elements of a good life: loving relationships, financial security, creating a home, supported decision-making, and the importance of contribution. During this interactive session, you will start to develop a plan to secure a good life for your relative.

Available anywhere by telephone

Date: Wednesday, February 6, 2008
Time: 12:00pm - 1:00pm (PST)
Cost: $30.00 (CDN) includes a copy of Safe and Secure ($15 value)

Click here to register online. Registration is limited to 12 participants.

For more information or to register by phone, call: 604.439.9566
or email: inquiries@plan.ca

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III. WILLS, TRUSTS and ESTATES SEMINAR

PLAN has a new online course to enable you to learn from the convenience of your own home. Through a combination of videos, interactive activities and forms, you'll learn everything you need to know about how to set up your will, including the different types of trusts you may want to include to leave an inheritance for your child with a disability. You'll also learn about the Registered Disability Savings Plan and how it will impact your estate planning.

This course will be offered every other month starting in March 2008 and takes between 3-5 hours to complete.

An up-to-date will ensures that your wishes for your relative with a disability are honoured after you are gone. Co-presented by an experienced lawyer and parent, these seminars answer your questions about discretionary trusts, planning your will, and choosing executors, guardians, and trustees. By the end, you’ll be better prepared to have a lawyer draft your will, saving you both time and money.

FEBRUARY WORKSHOP
Date: Tuesday, February 12, 2008
Time: 7pm - 9pm (PST)
Location: PLAN office: Suite 260-3665 Kingsway, Vancouver, BC
Cost: $60.00/Individual $90.00/Couple (CDN)

Click here to register online for the February workshop.

MARCH WORKSHOP
Date: Tuesday, March 11, 2008
Time: 10:30am - 12:30pm (PST)
Location: PLAN office: Suite 260-3665 Kingsway, Vancouver, BC
Cost: $60.00/Individual $90.00/Couple (CDN)

Click here to register online for the March workshop.

Register early! Registration is limited to 12 participants so that all questions can be answered.

For more information or to register by phone, call: 604.439.9566
or email: inquiries@plan.ca

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IV. TRUSTS

This new telelearning seminar will teach you about trusts and non-discretionary trusts, and will also discuss the impacts on disability benefits – all from the convenience of your own telephone! This seminar is most applicable to BC residents, and we invite registered participants to email their questions to us prior to the seminar.

Date: Wednesday, February 20, 2008
Time: 12pm - 1pm (PST)
Cost: $30.00 (CDN)

Available anywhere by telephone

Register early! Registration is limited to 12 participants

To register online, click here

For more information or to register by phone, call: 604.439.9566
or email: inquiries@plan.ca

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V. THE JOY OF STRESS

Presented by Ted Kuntz, M.Ed, Past President of PLAN

The Joy of Stress workshop will explore:

the difference between stress and distress
strategies to increase your peace, joy and happiness
thinking that feeds your negativity

For everyone going through the stresses of today’s fast paced world, this presentation is a must.

Date: Wednesday, February 20, 2008
Time: 7pm - 9:30pm (PST)
Location: Peter Kaye Room
Vancouver Public Library
350 West Georgia, Vancouver, BC

SPECIAL WORKSHOP FEE ONLY $15.00* (CDN)
*Because of the special discounted fee this workshop is not available for any further discounts.
We recommend that you register early!

To register online, click here

For more information or to register by phone, call: 604.439.9566
or email: inquiries@plan.ca

Ted Kuntz
Ted and his family became one of PLAN’s first younger Lifetime Members and he has grown to become an active part of PLAN’s corps of volunteers. He served on the Board of PLAN for many years as President. Ted is a psychotherapist in private practice in Vancouver.

He is also the published author of Peace Begins With Me and his successful workshop “The Joy of Stress” has been presented across Canada to corporations large and small.

Ted embodies the spirit of community, which is in fact the name of the award he has established to honour community contribution in the Tri-Cities area. His community activism has won him many awards.

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VI. HOME OPTIONS

Owning a house and creating a home are two different things. This one-hour telelearning session will help you learn about different housing options so your relative with a disability can have choice, control, and security in their home. You will hear about solutions other families have used, look at the issues involved with the coordination of home and support, and explore options for ownership.

Date: Wednesday, February 27, 2008
Time: 12pm - 1pm (PST) or
4pm - 5pm (PST)
Cost: $30.00 (CDN)

Available anywhere by telephone

Register early! Registration is limited to 12 participants

TWO TIMES TO CHOOSE FROM:
Click here to register online for the 12pm session.
Click here to register online for the 5pm session.

For more information or to register by phone, call: 604.439.9566
or email: inquiries@plan.ca

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VII. REGISTERED DISABILITY SAVINGS PLAN

In planning for the future, you need the most current and relevant information. The Disability Savings Plan will become available in 2008. It will provide another tool for you to plan with. Join us in this FREE telelearning seminar to learn about the details, its implementation and how it will work for your family.

Date: Wednesday, March 19, 2008
Time: 12:00pm - 1:00pm (PST)
Cost: FREE

Available anywhere by telephone

Click here to register online. Registration is limited to 12 participants.

For more information or to register by phone, call: 604.439.9566
or email: inquiries@plan.ca

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VIII. SUPPORTED DECISION MAKING

Families often walk a balancing act between respecting choices and ensuring the safety and well-being of our family members. Although stressful, families and individuals alike gain freedom as they explore decision-making. We will discuss how you can support your relative to make good decisions. We’ll discuss decision-making tools, including Representation Agreements. There will be plenty of time for questions and discussion.

Date: Wednesday, March 26, 2008
Time: 12pm - 1pm (PST)
Cost: $30.00 (CDN)

Available anywhere by telephone

Register early! Registration is limited to 12 participants

Click here to register online

For more information or to register by phone, call: 604.439.9566
or email: inquiries@plan.ca

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IX . HOME IS WHERE THE HEART IS

This interactive engaging online course explores the different home options available for your relative with a disability. Videos and stories showcase inspiring living situations, checklists and interactive forms help you think about everything you need to consider when thinking about creating a home for your relative with a disability. This course comes with a downloadable practical guide and lots of inspiring ideas to help you start dreaming. The first course will be offered in May, 2008

For more information about this new online course, please call the PLAN office at 604.439.9566 or send an email to: inquiries@plan.ca

RDSP Chit Chat

PLAN should at least be happy to see that the RDSP seems to be generating a lot more on-line interest, the number of Google searches seem to be increasing every day.

So now that the RDSP is finally a viable option for the disabled community in Nova Scotia, I thought I would pass on a few more interesting tidbits.

• We already know that the Bank of Montreal and the Royal Bank are on board. It is hoped that CIBC will be next, hopefully by the end of February.


• In regard to the necessity of the beneficiary of a RDSP being approved for the Disability Tax Credit, remember that you can set up the RDSP prior to being approved for the Disability Tax Credit, provided that you become approved for the DTC in the same year that you set up the RDSP.


• Lest we forget yearly Income Tax returns must be filed in order to leverage the government Bond and Grant. If the beneficiary is 19 years of age or over, it is their Income Tax returns that must be filed. If they are under the age of 19, it is the family's Income Tax Returns which will decide how money monies the federal government will pay the RDSP.
  But that doesn't meant that you shouldn't go ahead and set up your RDSP now. Go ahead and then once your Income Tax return is filed sometime in the next few months, that will leverage any government monies you are entitled to. Just remember, you must continue to file your Income Tax returns in order to be eligible for the Grant and Bond on a yearly basis.


• It's also important to realize (and I must confess that I hadn't) that you can go ahead and open a RDSP without putting any money in. That's right, a zero dollar account. Which (depending on the beneficiary's or their family's income) could still leverage the annual government bond of $1,000. You read that right, open a RDSP without putting a penny in and (depending on your income) the government may still give you free money every year.


• One very important point - if you open a RDSP on behalf of your disabled child who is under the age of majority, you, as the parent can continue as holder of the plan after the beneficiary reaches the age of majority. At which time, the beneficiary may be added to the RDSP as a joint holder if they so wish.
  
  As opposed to the situation when a RDSP is opened for a disabled adult, in which case, the beneficiary is the only one qualified to be a holder of the plan. Which gets you into issues of the competency of the beneficiary.
  
  Because remember that as a parent of disabled adult, you have absolutely no legal say or input into that adult's life. Unless of course you have guardianship. And although you may still want to seriously consider guardianship for other purposes, at least if the RDSP is opened while the beneficiary is still a minor child, you won't have that to worry about.
  
  So if you've been thinking of opening a RDSP for your minor child, you might want to seriously consider doing it now and not waiting until they become an adult. Not only will waiting cost you years of potential government money but you might well find yourself in a situation where it is very difficult to be able to even open the RDSP.
  
  Because if your adult child is not considered contractually competent to open a RDSP, then you, as as their parent, may only open a RDSP on their behalf if the plan is opened as a result of a transfer from another RDSP under which the disabled adult was named as a holder; or if you, as the parent, are legally authorized to act on behalf of the beneficiary (meaning you have guardianship).


• On a closing note, I find that a lot of people tend to be confused about some of the details of how a RDSP works, in particular the Canada Disabilty Savings Grant and the Canada Disabiltiy Savings Bond. There also seems to be some confusion around the fact that when any money is withdrawn from the RDSP, any government grants and bonds received in the previous ten years must be repaid to the government.
  
  Oh, the things I do for you. This page gives a fairly clear explanation of the Canada Disability Savings Grant and how much of it your RDSP will be eligible for. Likewise, this page for the Canada Disability Bond. And this page should cover off any questions you may have concerning the extension of the deadline for 2008. Any additional outstanding questions, hopefully, will be answered here.
  
  But if you read all that and find that you're still stuck, drop a comment or post me an email (just click on the See My Complete Profile link on the top of the sidebar to find the email address) and I will see what I can do.
  
  

Happy Planning!

Update: Say it and it shall be so!
CIBC has signed up as the third financial institution to be offering the RDSP to Canadians.

No Need to Panic ...

Just a quick note to let you know that, for many of you, there's no need to panic about the upcoming changes to the Income Tax Act concerning trusts and how they are taxed. Some of you might be aware that in 2016, the graduated taxation rate for testamentary trusts (meaning trusts created by a Will) will be replaced with a top marginal tax rate.

The bottom line relevance of this for us is that the way the world currently works is that when money is placed in a Henson Trust (aka an absolute discretionary trust), the income from that inheritance is taxed at a beginning (lower) marginal tax rate. This is a special stipulation that only applies to trusts created by a Will (testamentary trusts).

This is all about to change in 2016, however; when testamentary trusts will be taxed in the same way all other trusts are - meaning that they will be taxed at the top marginal tax rate. When you think about the inheritance you are leaving a challenged family member, you really don't want to see that eaten away by the trust being taxed at the highest taxation rate. After all, who needs that money more - the federal government or your family member?

But the reason I say that there is no need for most of us to panic is that the government has included a special exemption which states that if the beneficiary of the trust (your challenged family member, for example) qualifies for the Disability Tax Credit ("DTC"), the trust can be approved as a Qualifying Disability Trust and, as such, will continue to be taxed at beginning marginal rates, just as it is now.

There are a few more catches, of course, such as, for example, the fact that an individual can only have one Qualifying Disability Trust, which could result in some unexpected consequences if, for example, more than one family member leaves the person an inheritance in their Will. Please, always remember to check with your accountant or tax adviser, for information specific to your particular situation.

Moving past that, regular readers will recall that I have preached before as to the importance of the DTC,as that not only does it provide a nice tax break for the individual or their family, but the DTC is the very same tax credit that allows an individual to qualify for a RDSP. The math there is pretty simple ...

No DTC = No RDSP

Going back to the rules around the taxation of trust, it's important to realize, that the mere fact that your child (or other family member) qualifies for assistance through the Province's Services for Persons with Disabilities Disability Supports Program does not mean they automatically qualify for the DTC - and, even if they do qualify, it's highly unlikely that any government official is going to come along and suggest you apply for it.

In order to qualify for the DTC, the federal government must find that the person is "markedly restricted" in the activities of daily living. The wording of this requirement seems to be continually evolving, but trust me when I say that it is always worth the effort (and re-effort, should you be turned down) for a person to apply (and appeal and/or reapply, as necessary) for the DTC, as it has the potential to open many doors, as we've just seen with these new changes to the taxation of trust.

So what are you waiting for?

Blawg Bleg - Gap Year for Young Adults with Special Needs

I would like to request your assistance with my current project du jour.

Our kids who are eligible for the Disability Tax Credit receive a Disability Supplement on the monthly Child Tax Benefit cheque. This can be quite significant - in my case, both my daughters get the Supplement and it doubles the amount of our monthly cheque. But when they turn 18 (which my oldest does in March) they lose the Child Tax Benefit (including the Disability Supplement) and the Province doesn't kick in with Social Assistance benefits until the person turns 19.

I have been dealing with my MLA (Ramona Jennex) on this issue, who has been dealing with the Minister of Community Services on my behalf. Apparently the Minister if aware of the issue but hasn't yet figured our what (if anything) to do about it. So Ramona asked me to write a letter directly to the Minister setting out specifically what I wanted to see happen which she would then hand-deliver. You can find a copy of that letter below the jump.

I haven't heard anything back yet and I think it would be really good if the Minister had letters coming at her from all over the Province on this issue so she could see it's not an isolated thing, but it has a big impact on a lot of families. So I am asking you to please take a few minutes to write to both your MLA and the Minister expressing your concern with this matter. For many families, that lost income can make a big difference over the course of a year.

Although actual written (typed) letters are known to be much more effective than email, if writing an email is all you can do, even that is better than nothing. I believe we can get this issue dealt with if we make it clear we are serious about it. So please take a few minutes and type or write something up to send your MLA and the Minister. You can use the same letter to both (perhaps direct the letter to the Minister and copy it to the MLA) and work off my attached letter, if you wish, but please don't just copy my letter and send it on because we know it takes actual individual letters to have political impact and form letters just don't cut it.

If you're not sure who your MLA is you can go to this page and find out by selecting your electoral district from the drop down menu. Then click on the MLA Information link under the name of your MLA and you will be taken to a page with the MLA's contact information.

This page will give you the contact information for the Minister of Community Services.

Even if your child is over the age of 19 and this no longer directly applies to your family, I would still ask for your assistance. The more letters we get moving, the better chance we will to with deal with this issue. And the way I see it is we have a lot of things that need changing but we can only do it one issue at a time.

Hoping for Good News [Round Two]

I'm hoping (and praying) for some good news today.

Some night recall the Federal government's "thwarted" attempt in June to provide a one-time non-reportable payment to individuals with disabilites to "navigate the effects of the [COVID] outbreak" and "assist with additional expenses incurred during the pandemic". "

Thwarted" by party politics, it was.

Today, they return to the House of Commons for Round Two:

Today, the Honourable Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion, announced that the Government of Canada intends to propose legislation that would make the benefit available to more people and expand the one-time payment to include approximately 1.7 million Canadians with disabilities

You will qualify if you receive any of the following benefits/services:

•  a Disability Tax Credit certificate provided by the Canada Revenue Agency;
• Canada Pension Plan disability benefit or Quebec Pension Plan disability benefit; or
• disability supports provided by Veterans Affairs Canada.

This too is good news in that eligibility criteria have been expanded. I'm fairly confident that the original proposal would have only provided the payment to those in receipt of the Disability Tax Credit.

Here's hoping and praying that the Department of Community Services doesn't claw this one back too (as they did with the CERB).

ROUND TWO [bell rings]

Upcoming Upcomings

Lots of interesting things going on in these parts lately - just check out the heading "Places To Be - Upcoming Events" in the sidebar to the left.

But I thought I would highlight just a few.

One event I wish I could make but unfortunately can't is the Estate Planning for Adult Children with Disabilities session [sponsored by Support Services Group Co Operative Limited (SSG) and Halifax Association for Community Living] on Saturday, February 27th from 10:00 to 12:00 at the Seacoast Towers, 22-24 Dundas Street, Dartmouth NS.

George Clarke, a lawyer from Boyne Clarke, will present planning strategies to assist parents in leaving a legacy to adult children with a disability, without endangering public funding or programming. Guardianship and information on how to protect savings and guaranteed investments vs. non– guaranteed investments, as it relates to savings for your family and your dependent child will also be discussed. Insight will be shared on the types of investments that work well in trust funds. RSVP to James Baltus at 466-0230 or Jean Coleman at 463-4752 by February 25th. (Yeah, that's today).

It being tax season and all, the Disability Tax Credit is once again a hot topic. On Sunday, February, 28th, Megan Leslie, MP for Halifax will be hosting a Disability Tax Credit Presentation from 2:00 pm to 3:30 pm at Northwood Care Inc, Stadacona Room, 2615 Northwood Terrace, Halifax.

The Halifax Association for Community Living (a group which, if you're not familiar with them, you really should check it out) will be offering a Lunch 'n Learn session on the history and work of the organization on March 5, 2010.

There are not one but two Learning Disability Conferences in the near future.

The Annapolis Valley Regional School Board Learning Disabilities Conference Day (entitled "Unleashing the Potential of the Teenage Brain") is Saturday, March 27th at the Kentville Firehall. The registration deadline is March 12th. For more information or to register contact Gail Demmings AVRSB 538-4638 or email gail.demmings@avrsb.ednet.net.ca

The 2010 Nova Scotia Learning Disabilities Conference will be held on May 13th & 14th at the World Trade & Convention Centre in Halifax. Visit the LDNS website for more information and to preview this year’s list of speakers. Register by March 1, 2010 and you will be entered to win a day at the spa!

And last, but certainly not least, might I remind you that the NDP Consultations are continuing around the Province. This is your opportunity to voice your opinion as to how the government needs to support people with intellectual disabilities. You can visit the government website for directions on making your voices heard. But before you do, you might want to check out the responses from the Nova Scotia Association for Community Living regarding the 4 questions asked by Graham Steele, Finance Minister.

There you go ... don't say I never told ya!

Major Improvements to Disability Tax Credit Eligibility

I've written a fair bit over the years about the Disability Tax Credit ("DCT"); primarily how worthwhile it is to have and how difficult it is to be approved. Finally, some good news.

In order to qualify for the DTC, a medical practitioner must certify that you have have 

• a severe and prolonged impairment in one of the specified categories;
• a significant limitations in two or more categories, or 
• receive therapy to support a vital function.

The good news is that the eligibility criteria for mental functions and some other disabilities has been expanded and made retroactive to January 1, 2021, so even if you previously applied and were refused, you might just get there now.  

The various categories are set out below, but I'm going to focus on "mental function" today. You can view the previous (2020) and expanded criteria to qualify under mental function here. 

As just one example of the changes, previously only adaptive functioning, memory and judgment were considered under the heading "mental function". Now, in addition to the above, attention; concentration; goal setting; perception of reality; problem solving; regulating behaviour and emotions; and verbal and nonverbal comprehension will be considered. 

The requirements of what can be considered under each of the above items have also been expanded to  allow for consideration of more things. For example., when looking at adaptive functioning, for the first time adapting to change, expressing basic needs and going into the community will be considered.

One of my personal favourites, when looking at judgment, previously only things such as following treatment prescribed by a doctor and selecting clothing appropriate to the weather were considered. Now, in addition to the above, recognizing the risks of being taken advantage of by others and understanding the consequences of your actions will also be considered. Anyone who has dealt with a representation application (formerly known as adult guardianship) knows just how important those last two things are to safety and functioning in everyday life.

It's a little confusing to explain some of the changes, so I strongly recommend you check out the both the previous and new more inclusive list of items considered for yourself. 

As I said, we have only looked at the criteria under "mental functions" in this post, but as noted above there are changes in the criterial for other types of disabilities, too, such as 

• the recognition of more activities in determining time spent on life-sustaining therapies; 
• a decrease in the required frequency of life sustaining therapy (now requires a minimum of two times per week as opposed to three); and
• including individual with Type One diabetes under the heading "life sustaining therapy".

You can find more detail on those other categories here. 

Not to say the system is now perfect but it should be a LOT BETTER than before and remember, besides the tax savings, the DTC is the gateway to all federal programs for persons with disabilities, such as the Registered Disability Savings Plan and soon (hopefully) the Canada Disability Benefit.

* The categories are walking, mental functions, dressing, feeding, eliminating (bowel or bladder functions), hearing, speaking and vision 

This & That

Just a quick note to say that I've updated the "Places To Be" link on the sidebar (about 1/3 of the way down the page if you're not familiar with it).

It's nice to see that the IWK has brought back the EASE program (which has been conspicuously absent for quite some time now) and HACL still has some interesting upcoming workshops [such as "Planning for the Future - Pre-employment", "Planning for the Future - Living Independently in the Community" and "Putting it All Together - Individual Program Plans (IPPs)"] over the next couple of months.

And, of course, I would remiss not to mention my own upcoming workshops in May, one in Halifax (May 13th) and one in Berwick (May 18th) - both will include presentations on "Understanding the Legal Options to Support an Adult with an Intellectual Disability" and "Protecting Your Child's Financial Future".

That's not all, of course - there are a few other interesting upcoming events to be found there as well so be sure to check out the entire list.

~  ~ ~

One other tip to pass on - we've talked in the past about the importance of the Disability Tax Credit and even some information on how to go about applying for it. But I recently came across an article that sets out some of the issues to be aware of with such companies. So you might just want to check that out, too. After all, forewarned is forearmed, right?

~ ~ ~

Almost forgot - for anyone interested, the federal government is conducting a study concerning government programs for persons with disabilities and issues related to saving for the future. You might be eligible to participate if you or an immediate family member is in receipt of the Disability Tax Credit. Participation involves either a 2-hour focus group or a 40-minute telephone interview.

To volunteer for the study, call 1-866-770-4649 and leave a message with your name and telephone number. Someone will call you back to confirm your eligibility for the study.

Oh yeah, did I forget to mention .. you will be paid a $75 honorarium for participating.

So we have that going for us, which is nice.

Tax Time Tips

Realizing this might be a wee bit late for some (such as those who do a much better job of getting their act together than I), but hoping it will fall in the category of better later than never (as opposed to "too little, too late"), I offer you some tips for that most favourite time of the year ... Income Tax time!

First up: Tax Planning and the Disability Tax Credit
(And just as an aside, if you're not familiar with the DTC, you have some serious reading to do - just follow that last link and scroll down past this post.)

Secondly: The new Family Caregiver Amount Credit
(Not to be confused with the Caregiver Amount Credit - both of which can be claimed in the right circumstances)

And Third: Isn't it frustrating when you KNOW something to be so, know you've read it before but you just can't seem to find the proof? And even more frustrating when it's a tax question that you take to the CRA, only to be told that "No, you're wrong, you can't do that", when you KNOW darn well you can?

Well, that was my story until this past weekend when I finally came across the proof I was looking for (ironically, by following a link on this very blawg). All this to say...

Yes, Victoria, you can claim the cost of your child's private LD school tuition (and room and board, if applicable) if your child has the DTC. (Scroll 3/4 of the way down this page and look at No. 8 "Fees for Specialized Camps (Summer and Winter) and Specialized Schools").

There you go - run along and have some fun now.

Lessons Learned: The DTC Appeal Process [Part III]

As noted in my last post, applying (or re-applying) for the DTC involves having the relevant medical
practitioner provide the required information on the T2201 form. Depending on the extent of the
individual's challenges, you might want to consider having the medical practitioner send along an additional letter or report with the application form.

I.   The Appeal Route: Roads Not Taken?
There are three possible methods to challenge an initial denial of he DTC; namely

• reapply for the DTC;
• request an informal review; and/or
• file a Notice of Objection (formal appeal).

Although you can re-apply at any time, unless something has changed (or you now have significant new medical information to provide) with the person's situation, you are probably just as well (or better) off to proceed through the appeal route.

Whether proceeding with an informal review or a Notice of Objection, you will want to highlight
specific information found in the T2201 form and any included correspondence that shows how the effects of the person's impairments on their ability to perform the Activities of Daily Living. Remember, you are now providing  information to an individual who has no prior knowledge of the situation and must highlight for him or her the facts that you believe makes the person eligible for the DTC.

You have one year from the date of the denial to request an informal review but only 90 days to pursue the more formal Notice of Objection. If this timing sounds illogical to you, I agree but it is what it is.

Unfortunately, this timing issue can make things a little more complicated. As it could take anywhere from six months to two years to receive a response to your request for an informal review, you might well still be waiting for that response as you approach the one-year time limit to file a formal Notice of Objection. For this reason, you need to document your timelines carefully and make sure you file a Notice of Objection two or three weeks prior to the one-year time limit, even if you haven't yet received a response to your informal review.

II.  The So-called Requirement of 'Additional Medical Information"

Whichever route you take, it's important to include any new medical information that you have not already supplied, such as new or updated medical reports, or an additional letter from a medical practitioner who is familiar with the situation. This additional information will clearly focus on how the impairment affects the activities of daily living.

However, it's important to realize that although you can (and should) supply any additional helpful medical information you can, you are most certainly not obligated to do so.

This is extremely important because the CRA appears to have taken the ludicrous (and totally unsupported) position that it CANNOT and WILL NOT review any application unless additional medical information has been provided.

This is exactly what occurred when I requested an informal review of the denial of my youngest daughter's re application for the DTC and it's flatout not true. This position violates not only the
CRA's own Taxpayer Bill of Rights, but also the broader legal principle that when appealing a government decision you have the right to have that decision reviewed by an independent party (someone not involved in the original decision) whether or not you have new information to provide.

Whether a review or appeal, should you receive such a response, know that the CRA is simply up to  its old tricks. Unfortunately, too many people don't realize this and once they receive a letter denying their request for a review, they simply move on. Thank goodness I (and now you) know differently. If you receive such a response, simply move on to the next level of appeal and file a Notice of Objection.

III. The Notice of Objection
The procedure for filing a Notice of Objection is set out here, along with information as to the  documentation required. Note that there is no mention of a requirement to provide any additional medical information, only the "relevant facts and reasons for your objection" and "copies of all documents that support your objection". This supporting documentation will often be as simple as the T2201 form you originally sent to the CRA (along with any additional material that might have been attached).

It appears that the CRA is effectively requiring the majority of DTC applicants to reach this level before providing any semblance of due process. Unless your case is an obvious slam dunk (as occurred with my daughter and other situations I've recently become aware of), you can expect to receive a phone call from the authorized CRA officer prior to the the final decision being made.

V. The Tax Court of Canada
Should your Notice of Objection be dismissed, you have one final avenue of appeal to the Tax Court of Canada. However, I cannot recommend you take on this level of appeal without legal counsel.

VI. One Final Step: the Service Complaint
You also have the right to lodge a service complaint with the Office of the Taxpayer's Ombudsman. Please don't write this step off as a waste of time.

One of the issues noted in the "2019 First Annual Report of the Disability Advisory Committee: Enabling access to disability tax measures – Report in brief"was that the CRA doesn't
adequately share information about the results of objections or appeals with its employees, which negatively affects the Agency's ability to  improve its performance. Assessment decisions that are overturned  may signal inconsistencies in assessment or objection processes and sharing such information should reduce the numbers of objections and appeals.

The  CRA agreed and has explained that it is committed to ensuring that objection and appeal decisions are shared with all assessing and audit areas.

Let's do our part to give them a little shove push in that direction.

* With a tip of the hat and many thanks to Dan Paladin of Padalin Disability Tax Credit Solutions.