The Top 5 Reasons the CRA Denies Disability Tax Credit Applications #1
Reason #1: The Doctor does not provide enough information on the application form
The Canada Revenue Agency (CRA) made changes to the Disability Tax Credit Application form several years ago. One of the changes was to the "Effects of Impairment" section. This section now directs doctors to “describe” their patient’s impairment with respect to how it affects day to day living. The form now states: “It is mandatory that you describe the effects of your patient’s impairment on his or her ability to do each of the basic activities of daily living that you indicated are or were markedly or significantly restricted. If you need more space, use a separate sheet of paper, sign it and attach it to this form. You may include copies of medical reports, diagnostic tests, and any other medical information, if needed.”
The problem, however, is that the patient’s medical record is not a diary. It will contain information regarding medications, test results etc. but it rarely contains the type of information the CRA is actually looking for when determine eligibility.
The doctor rarely knows the extent of the issues someone might have in walking a city block, or the time it takes them to get dressed, or the difficulty encountered when preparing a meal or the extent of how self-care is abandoned during bouts of depression.
To compound the situation the doctor is also instructed that information on working, housekeeping, managing a bank account, and social or recreational activities are not considered basic activities of daily living. With these two factors many doctors find themselves providing only a diagnosis and sparse information about the actual restrictions that are experienced, and this unfortunately leads to many deserving individuals being denied eligibility.
As a Disability Tax Credit Advisor, all of our clients receive an initial consult to determine how their impairments may meet the criteria for the disability tax credit. They are then provided with a customized effects of impairment document that can be used as discussion points for you and your doctor.
Services are provided on a contingency basis, which means there are no upfront consulting or application fees. A fee is only applicable when an application for the DTC is approved and a tax refund is generated.
Contact us for a free consultation to see if you could benefit from the disability tax credit.