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

When Kathy Meyers learned about the possibility of receiving money back from the Canada Revenue Agency (CRA) through the disability tax credit, she was thrilled. However, the idea of having to fill out forms with her doctor on top of her already demanding schedule felt like an additional burden. Meyers, a resident of Port Coquitlam, B.C., suffers from Crohn’s disease, a severe condition that has left her unable to work and reliant on permanent disability benefits.

Despite her reservations, Meyers decided to seek assistance from True North Disability Services to handle the disability tax credit applications for both herself and her 14-year-old son. Her husband, who is also disabled, attempted to file an application on his own after his doctor refused to work with a DTC advocacy company.

Over a year later, Meyers is still waiting for the outcome of her application. For her son, the family was charged over $7,600 by True North — 20% of the money they received from the CRA, plus GST. This financial burden has added to the stress Meyers and her family face, as they struggle to make ends meet with limited income. Additionally, she still owes her doctor $150 for each of the DTC forms he filled out.

Reflecting on her experience, Meyers regrets using a DTC company, especially now that she knows there are free alternatives available. She believes that these companies take advantage of individuals in need of the disability tax credit by charging exorbitant fees.

The CRA expects DTC applications to increase significantly in the coming years due to the introduction of the Canada Disability Benefit. However, many people are unaware of free or lower-cost assistance options, leading them to seek help from companies like True North. These companies charge contingency fees ranging from 15 to 40%, which can eat into the funds intended for individuals with disabilities.

Former MP Carla Qualtrough, who advocated for the Canada Disability Benefit, is critical of the current DTC application system and the companies that profit from it. She believes that people with disabilities are being taken advantage of and calls for a more streamlined and affordable process for accessing benefits.

The federal government has attempted to limit DTC fees to $100, but a legal challenge from True North has halted this initiative. The company argues that these fees are necessary to provide comprehensive support for clients, including advocacy with the CRA and medical professionals.

While some former clients like Kathy Johnson have had positive experiences with True North, others like Leanne King feel that the fees charged are excessive and predatory. Medical experts, including the Canadian Medical Association and Doctors of B.C., are advocating for a simplified DTC application process to reduce the burden on both individuals with disabilities and medical professionals.

The CRA has digitized the application process in response to concerns from the medical industry but remains bound by legislation in terms of further streamlining. Minister of Jobs and Families Patty Hajdu has committed to reviewing and reforming the DTC application process to make it more accessible.

In an ideal scenario, Qualtrough envisions a one-step process for individuals to access both provincial and federal disability benefit programs seamlessly. She believes that the current system of relying on tax analysts as gatekeepers for social benefits is not the right approach and calls for a more consistent and inclusive approach to disability support in Canada.