No legal basis for 90% guideline

July 25, 2017

CRA continues to mislead medical practitioners by imposing the 90% guideline to assess eligibility for the DTC.

In its latest efforts to reduce the number of claimants for the DTC, CRA imposes the 90% guideline to assess eligibility for the DTC even though there is no statutory basis to support such a harsh and inflexible interpretation of the phrase "all or substantially all of the time" in the Income Tax Act. The 90% guideline is repeated throughout Form T2201 Disability Tax Credit Certificate and the follow-up questionnaires that are referred to as "clarification letters."

Such abuse of its mandate for fairness is truly shocking when the legislative branch of the CRA has conceded that "the words 'substantially all' cannot be rigidly interpreted as referring to a specific percentage in all cases... depending on facts and circumstances, a level of something less than 90% could still meet the 'substantially all' requirement."

I thought we resolved concerns about tax fairness by appealing to our Members of Parliament more than 10 years ago. They censured the Canada Revenue Agency (CRA) for gross mismanagement and supported major reforms to the Income Tax Act. However, in recent years, CRA has been clawing back many of the gains we made by interpreting the legislation narrowly and technically despite numerous rulings to the contrary by justices of the Tax Court of Canada and the Federal Court of Appeal.

Once again,we need to fight back.

This website is designed to provide the tools for us to reach out to our Members of Parliament once again to ensure the reforms we fought for so hard for are upheld by the CRA.

This website shares information regarding the application and appeal process for the DTC as well as rulings by the Tax Court of Canada and Federal Court of Appeal that support a sensible and practical as well as a humane and compassionate interpretation of the legislation.

The website also provides guidelines for individuals, family members and medical practitioners as far as the determination of the eligibility criteria in all categories for the DTC.