Is the Disability Tax Credit Being Abused?

by in Canadian Government News and Updates
While tax credits are available for those with a disability, this tax credit is often being abused, putting an unnecessary strain on the system. Visit your local Calgary tax services company, KD to learn about properly using a disability tax creditAn article on the National Post by Tom Blackwell alleges that the disability tax credit is indeed being abused.  The article entitled, “Tax firms may be exploiting ADHD patients,” said that a large number of attention-deficit disorder patients have been applying for disability tax credits despite the fact that many do not qualify or do not need it at all.  This was the statement released by Dr. UmeshJain, a psychiatrist and one of Canada’s leading experts on the disorder, as he relates that requests from patients to complete forms required by the CRA continue to pour in.

According to Dr. Umesh Jain, patients are being exploited by companies that process requests for the tax credit and that the flood of applications could put undue stress on the tax credit program.

The flood of requests started when agencies began their advertising campaigns geared towards attention-deficit patients.  The psychiatrists even disclose some instances when he chastises patients who are trying to get the credit but are not deserving.  Dr Jain would say to patients, “What are you talking about? You’re making a six-figure income.  Technically, you may qualify, but as a gatekeeper to the system, why would I suggest you get a tax deduction when you can pay for all these things?”

The article also mentions a previous controversy related to the disability tax credit program.  In past media reports, documents showed that the CRA accused a defunct charity and a Winnipeg company of manipulating undeserving clients’ applications to ensure they received the tax credit.

According to Marie White, past chairwoman of the Council of Canadians with Disability, the disability tax credit is “paltry to start with . . and to charge someone a fee for processing it seems appalling.”  Typically, agencies charge 20% to 30% of the combined federal and provincial credits, which can total to $15,000, including the maximum 10 years of retroactive credits allowed under the program.

To read the full article, please go to:

Reference:  “Tax firms may be exploiting ADHD patients,” by Tom Blackwell, July 19, 2011, National Post,
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