Disability tax credits are critical for some Canadians. But applying for them can cost thousands

When Kathy Meyers heard she could get wealth backmost from the Canada Revenue Agency (CRA) done the disablement taxation credit, she was excited — but the imaginable of filling retired forms alongside her doc felt similar different load to her already demanding days. 

Meyers, a Port Coquitlam, B.C., resident, has Crohn's disease. Her information is terrible — adjacent with an ileostomy and the removal of her colon, she frequents the infirmary for months astatine a time, and is connected imperishable disablement arsenic she is incapable to work.

So erstwhile a person recommended True North Disability Services to grip the disablement taxation recognition (DTC) applications for Meyers and her 14-year-old son, it felt similar a cleanable fit.

Her husband, who is besides disabled, plans to record an exertion connected his own, aft his doc refused to enactment with a DTC advocacy company.

More than a twelvemonth since she first hired True North, Meyers is inactive awaiting the result of her application. But for her son's palmy return, the household was billed much than $7,600 by the company — 20 per cent of the wealth they received from the CRA, positive GST.

According to 2018 figures from the CRA, these businesses complaint radical anyplace from 15 to 40 per cent successful contingency fees for their services.

That's wealth Meyers says could person gone a agelong mode for her low-income family, arsenic the funds they received from the CRA have so acold gone close backmost retired the doorway to wage bills and debts. It also comes connected apical of two $150 fees she inactive owes her doctor, who was liable for filling successful each but 2 of the 16-page DTC forms for both Meyers and her son. 

Meyers says she regrets utilizing a DTC institution — particularly present knowing free alternatives exist.

"It's been precise stressful and financially it's been precise hard," Meyers said.

"I deliberation they're abusing the radical that are successful request of obtaining this disablement taxation recognition due to the fact that they're taking specified a large chunk of the rebate."

The CRA estimates applications for the DTC volition triple successful the adjacent 5 to six years because it's the main request to get the caller monthly $200 Canada Disability Benefit, which volition statesman payments successful July.

But determination remains limited consciousness of escaped oregon little outgo assistance — with galore radical turning to True North and different DTC advocacy companies that connection to simplify the exertion process for a percent of the return. 

DTC companies accidental their fees — which are lone charged successful the lawsuit of palmy applications — are captious to money enactment for filing DTC applications, and besides to substance their advocacy for clients to the CRA and aesculapian professionals.

Along with non-profits and different groups that supply escaped help, determination are different services that complaint a level complaint fee, typically a fewer 100 dollars. 

Former MP Carla Qualtrough, who pushed for the instauration of the Canada Disability Benefit successful her clip arsenic curate of employment, workforce improvement and disablement inclusion, is captious of the DTC exertion strategy — and the companies that nett from wealth intended for radical with disabilities.

She says proceeding astir what Meyers's family is facing is heartbreaking.

"It feels similar radical are being taken vantage of," she said. 

"It's truly frustrating to me, due to the fact that the full constituent of these benefits is poorness reduction, is helping radical wage for the things they desperately need, and past they are being charged thousands and thousands of dollars."

The national authorities has attempted to bounds the fees to $100 — but an injunction from the B.C. Supreme Court successful 2021 halted this, pursuing a ineligible situation by True North and its co-founder Shane Nercessian. A proceedings has been scheduled for July 2026.

DTC companies trust connected fees

When reached by the CBC implicit the telephone and email, Nercessian declined interrogation requests. The 2021 injunction ruling described Nercessian's statement against restricting fees.

"Mr. Nercessian deposes that the $100 maximum interest headdress arsenic acceptable retired successful the Regulation would lone screen basal information introduction and processing, leaving small to nary country to assistance with issues involving eligibility, advocacy connected behalf of the lawsuit … and enactment with the certifying wellness professional, and different associated services," reads the ruling. 

"In the result, most, if not all, DTC companies volition beryllium driven retired of concern arsenic it volition nary longer beryllium economical to supply galore DTC services."

The ruling besides provides an overview of the services True North provides for clients, including a 10-year taxation assessment, explaining the exertion and eligibility criteria to aesculapian professionals, and filing objections if clients are "unjustly denied." 

In an email to the CBC, Nercessian said True North is portion of the Disability Tax Fairness Alliance and played a "pivotal role" successful exposing issues with insulin-dependent diabetics being denied benefits.

There are erstwhile clients who accidental they are grateful for True North's assistance with their applications, specified arsenic Kathy Johnson, a nonmigratory of Blue River, B.C.

About $1,900 of the much than $9,000 she received backmost from the DTC went to True North. Though Johnson wasn't alert of escaped options anterior to applying, she didn't consciousness she had the clip and vigor to bash it herself — and says she would urge True North to others.

"Really, I bash person nary regrets," she said.

Others bash person regrets, similar Leanne King, who has diabetes and polycystic kidney disease. She says she apt wouldn't person spent $3,850 with True North if she had known alternatives existed.

"I conscionable wasn't susceptible astatine the clip of managing each that they did," she said. "I bash deliberation it's a batch [of money], and I bash deliberation it's a small spot predatory, due to the fact that they're dealing with radical that are sick."

Medical experts telephone for exertion to beryllium streamlined

The Canadian Medical Association, Doctors of B.C. and disablement advocates are among those calling for the DTC process to beryllium simplified, to trim the load connected some aesculapian professionals and radical with disabilities. 

Dr. Charlene Lui, president of Doctors of B.C., says the time-consuming forms origin "significant motivation distress for each physicians," arsenic it takes them distant from patients who already person constricted entree to doctors. 

"Ideally, the signifier would beryllium shortened, made easier to capable out, and beryllium embedded wrong the physics record," said Lui.

The CRA says it "significantly overhauled" the exertion process by digitizing it successful 2023, sparked by concerns successful the aesculapian industry. When asked astir whether it whitethorn streamline further with suggestions posed by Lui — specified arsenic accepting a doctor's enactment oregon forms compatible with existing files — the CRA said it is bound by legislation.

"The CRA continues its efforts to marque the DTC much accessible, aligning with the [Disability Advisory Committee's] recommendations to guarantee that individuals with disabilities tin entree the recognition without fiscal burden," the connection reads.

Minister of Jobs and Families Patty Hajdu was unavailable for an interview, and her bureau did not respond to circumstantial questions from the CBC. The ministry said Canada is backing $23.5 cardinal for six disablement non-profits to assistance radical entree benefits including the DTC for free, and $243 cardinal to destruct out-of-pocket fees for aesculapian providers to capable retired DTC forms.

"The Government of Canada has committed to further reviewing and reforming the process to use for the Disability Tax Credit," said the ministry successful a statement.

To Qualtrough, the contented lies with the deficiency of a accordant attack to disablement enactment successful Canada. Ideally, she says, radical should beryllium capable to acquisition a one-step process to entree each provincial and national disablement payment programs.

"We're asking taxation analysts to determine and service arsenic the gatekeepers for these truly important societal benefits, it's conscionable not the close fit," she said.