In this recent tax court case the appellant was denied the Disability Tax Credit (DTC) by the CRA because her condition, celiac disease, did not qualify as a medical condition which met the statutory threshold for the credit. As the judge said in the opening paragraphs:
“Eligibility for the DTC is not based solely on the existence of a medical condition; taxpayers must still establish a resulting marked restriction in an activity of daily living.”
Furthermore, the judge explained:
“The purpose of the DTC is to provide modest tax relief for individuals who fall within the restricted category of markedly physically or mentally impaired persons. While the DTC provisions should be given a humane and compassionate interpretation, the Court cannot disregard clear statutory requirements and restrictions. Attention must be paid to the terms chosen by Parliament.”
“The terms used in the DTC provisions have legal meanings that may not align with a layperson’s understanding or even that of a medical professional. For that reason, certification by a medical practitioner does not guarantee eligibility for the credit. This Court must still assess whether the legal requirements of the Act have been met.”
Finally, the judge concluded with:
“This decision does not speak to the importance of Ms. Adams following a gluten-free diet to address the associated risks of celiac disease and to ultimately live a better, healthier life. The focus of this analysis is the specific legal question of whether Ms. Adams met the criteria to qualify for the DTC. In answering this question, I am bound to apply the clear words and parameters established by Parliament.”
If you or someone you know has been denied the Disability Tax Credit you can appeal the decision. Get in touch with ZheroTax and you will find former auditors, appeals and rulings officers who can help you understand your probability for a successful appeal and make a contingency offer to represent you.
As always, you are getting the straight goods from an experienced tax professional when you consult any of the suppliers on ZheroTax. They won’t make a contingency offer unless they believe they are going to win the case, and that’s a measure of confidence that you won’t get in the general marketplace of service providers.