Are Canadians with Disabilities Tax Cheats?

February 10, 2019

One might wonder.

As far as I know, only tax cheats have to give back any ill-gotten gains.

And yet, our federal government is clawing back millions of dollars in contributions from thousands of Canadians with disabilities, who have opened up Registered Disability Savings Plans (RDSPs).


The CRA decided that their disabilities are no longer severe enough to qualify for the Disability Tax Credit (DTC) when they were asked to reapply for the tax credit.

Is this true?

Not according to their doctors.
Not according to the Auditor General of Canada.
Not according to the Senate of Canada.
Not according to the Tax Court of Canada.

Why are they denied the DTC?

We don’t always know since CRA is not required to provide a valid reason.

Does it pay to fight back when denied the DTC?

Yes. An average of 85% of the Objections filed with the Appeals Branch of CRA in recent years have been successful.

Can we fix this?

Yes. Get in touch with your Member of Parliament and ask him or her to help ensure that Canadians with disabilities do not lose government contributions to their RDSPs when they are denied the DTC.  

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