Determination of eligibility for the Disability Tax Credit (DTC)

  1. What are the current rules for filing an objection related to the DTC?
  2. What are the proposed changes to the DTC?
  3. I previously applied for the DTC and was denied. What should I do now?
  4. I have submitted a request for the DTC, but I have not yet received a determination from the CRA. How does this change affect my request?
  5. I am applying for the disability tax credit for the first time. How do I request a determination?
  6. When will my objection be processed?
  7. Where can I get more information concerning this proposed measure?

1. What are the current rules for filing an objection related to the DTC?

Currently, you cannot base an objection on the notice of determination that we issue after we review Form T2201, Disability Tax Credit Certificate. To file an objection related to the DTC, you have to wait until you have received a notice of assessment or notice of reassessment for the year in question. We send you these notices after you file an Income Tax and Benefit Return, or when you ask for a correction to an Income Tax and Benefit Return. However, when your income was too low to pay tax, you received a notification that no tax was payable after your return was processed. A taxpayer could not object to such a notification.

2. What are the proposed changes to the DTC?

For 2010 and subsequent tax years, you will be able to file an objection when the Canada Revenue Agency (CRA) has determined that you are not eligible for the DTC (see questions 3 and 4 for special transitional rules). The time limit for filing an objection will be either 90 days after we mail the notice of determination or one year after the due date for the tax year in question, whichever is later. If you choose to file an objection, the Appeals Division will review your file. You should send either a completed Form T400A, Objection – Income Tax Act, or a letter, to the attention of:

Chief of Appeals
Sudbury Tax Services Office
1050 Notre Dame Avenue
Sudbury ON  P3A 5C1

You may also file an objection electronically through our secure Web page at www.cra.gc.ca/myaccount.

3. I previously applied for the DTC and was denied. What should I do now?

For the 2008, 2009, and 2010 tax years, if you were not able to file an objection because your income was too low to pay tax, or if your objection was declared invalid because there was no tax to pay, you will now be able to file an objection related to CRA's original decision rendered by the Disability Tax Credit Unit. You will have 180 days after the proposed changes receive Royal Assent [Footnote 1] to file an objection.

4. I have submitted a request for the DTC, but I have not yet received a determination from the CRA. How does this change affect my request?

Once we have reviewed your request, we will send you a notice of determination. If the Disability Tax Credit Unit has determined that you are not eligible for the DTC for the 2008, 2009, or 2010 tax years and you were not able to file an objection because your income was too low to pay tax, or if your objection was declared invalid because there was no tax to pay, you will have 180 days after the proposed changes receive Royal Assent [Footnote 1], or 180 days after we send you the notice of determination, whichever is later, to file your objection.

5. I am applying for the disability tax credit for the first time. How do I request a determination?

To request a determination, submit Form T2201, Disability Tax Credit Certificate , to the Disability Tax Credit Unit of your tax centre as identified on the form. If we do not approve your application, we will send you a notice of determination to explain why your application was denied. Since we base our decision on the information provided by the qualified practitioner, check your copy of the application form against the reason given.

If you have additional medical information from a qualified practitioner that we did not have in our first review of the form, send that information to the Disability Tax Credit Unit of your tax centre and we will review your file again.

You will also have the choice to object to the determination. See question 2 for information on submitting an objection.

6. When will my objection be processed?

Once the legislation related to this change has received Royal Assent, we will begin processing the objections.

7. Where can I get more information concerning this proposed measure?

To get more information concerning this measure, you should contact the Department of Finance.

[Footnote 1]
This measure received Royal Assent on June 26, 2011 as part of Bill C-3.