The Top 5 Reasons the CRA denies Disability Tax Credit Applications #2
December 9, 2017
Reason #2: The Doctor does not provide enough information on the Clarification Response Questionnaire
When the doctor does not provide enough information on the Disability Tax Credit (DTC) application form the Canada Revenue Agency (CRA) sends the doctor a “clarification response questionnaire”. The questions on the clarification questionnaire will depend on the category indicated on the initial application. So, for example, if the doctor indicated the impairment is in walking, the doctor receives the “walking questionnaire”. If the impairment is in mental functions the doctor will receive the ‘mental functions questionnaire’ and so on. If the doctor indicated multiple categories on the application they will receive a single clarification questionnaire that asks questions on each of the categories.
Once again, the doctor will be asked to provide examples of how the impairment affects their patient’s day-to-day living. So, we are back to the same problems the doctor may have encountered on the initial application.
The clarification response questionnaire is relatively simple for the physical categories such as “walking”, ‘dressing”, “hearing” etc. but is much more comprehensive for the mental functions category. Some examples of the questions are:
Can the patient perform daily living skills independently? Can the patient express basic needs and respond to social interactions appropriately? Can the patient adapt to minor changes in environment or routine?
The doctor must first answer yes or no then provide examples.
Sometimes the doctor has provided ample information on the initial application but is still required to complete the clarification questionnaire. There’s no doubt the doctor becomes frustrated with the process and is left wondering what more information is required. Sometimes it is not about the amount of information but rather the type of information provided that is the problem. If your doctor provides examples that are limited to working, academics or social activities the application will be denied.
As your Disability Tax Credit Advisors we provide all of our clients with comprehensive assistance and monitoring through each stage of the application process, including the Clarification Response Questionnaire. We recommend to anyone applying for the DTC to keep copies of all application forms and to ask your doctor for a copy of this questionnaire, this will be very important should you be denied eligibility. If you have been denied within the last 90 days we would be happy to assess your documentation to see if an appeal is a viable course of action.
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 today to start the process if you feel that you or someone you know may qualify for this tax credit!