Disability Tax Credit - Proposed Fee Restrictions - Draft regulations would set a maximum fee of $100 for applications for the DTC, plus $100 for a claim contingent on such eligibility.

DISABILITY TAX CREDIT (DTC) – PROPOSED FEE RESTRICTIONS

On June 1, 2019, the Canada Gazette (Vol. 153, No. 22) was released, including draft regulations and an analysis of the reasoning behind them. The Regulations would establish the maximum fee in respect of the DTC as:

  • $100 for a request for determination of DTC eligibility (Subsection 152(1.01)); and

  • $100 per taxation year for a DTC claim for the individual (Subsection 118.3(1)) or a dependant (Subsection 118.3(2)), or in respect of any claim that is contingent on DTC eligibility for that individual or a dependant.

The Canada Gazette notes that, as a result, the maximum fee charged could range from $200 for completing Part A of Form T2201 and the tax return for the current year to $1,100 for completing Part A in conjunction with a request for adjustments of ten previous taxation years.

This maximum is to be adjusted for inflation in 2025 and every fifth subsequent year.

Commentary released with the proposed regulations notes that this maximum fee does not apply to the parts of a personal income tax return not contingent on eligibility for the DTC. It also indicates that medical practitioners’ fees are not restricted where they assist only in the completion of Part B of Form T2201. The regulations would come into force at the same time as the related legislation, which has not yet been set.

For further information see Video Tax News Monthly Tax Update Newsletter, Issue No. 455.

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Protecting your private tax information - CRA has released a number of tips to help keep your tax information secure.

CRA RELEASES

The CRA has released a Tax Tip which summarizes a number of tips to safeguard tax information, including the following:

  • Signing up for My Account or My Business Account and registering for email notifications when paper mail is returned to CRA, or when certain other changes are made on one’s account.

  • Using CRA protocols to authenticate a caller’s identity. These will be enhanced in August 2019 with the option to set a unique Personal Identification Number which must be provided before a call centre agent can access the individual’s accounts.

  • Verifying a purported CRA caller by requesting their badge number and calling the individual or business enquiries line for confirmation.

The Tip also provides guidance on steps individuals who may be victims of identity theft should take, including contacting CRA to request enhanced security measures be placed on their accounts.

For additional information, see the updated Guide RC284, Protect Yourself Against Identity Theft, which provides tips on preventing identity theft as well as steps to take if an individual suspects that they are a victim.

For further information see Video Tax News Monthly Tax Update Newsletter, Issue No. 457.

Life in the Tax Lane - October 2019

This FREE 10-minute video for Canadian Tax Professionals includes rapid-fire discussion of select recent developments in the wonderful world of Canadian tax presented by the Video Tax News Team. 

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New Course! CRA Audits – Provision and Retention of Documents | 1-hour |  Online

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When you deal with CRA on behalf of your clients, do you know what you have to provide or not provide? Could your actions harm your clients?  Could your advice on document retention impair your clients’ ability to defend themselves against a CRA assessment? 

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