The Office of the Taxpayers’ Ombudsman (Ombudsman) released a report on February 25, 2016 in response to complaints from taxpayers regarding ineffective communications from the CRA with respect to reapplication requirements for the disability tax credit (DTC). To be specific, taxpayers were under the belief that the DTC, once approved, remained in effect indefinitely and they would not be required to reapply. The main issue of the complaints focused on the CRA not adequately informing the taxpayers of the temporary status of the DTC and the date of expiry.
In its report, the Ombudsman concluded the CRA did provide clear and sufficient information about the temporary nature of the DTC and its expiry date in both the initial eligibility letter and through a reminder in taxpayers’s notices of assessment regarding the expiry of the credit.
Eligible individuals currently receiving the DTC should be mindful of expiry dates and plan accordingly. DTC claimants should review both their initial eligibility letter and notice of assessment. As the DTC approval time may take up to six months, DTC reapplications should be submitted in advance of its expiry dates. (You may read the report at http://www.oto-boc.gc.ca/rprts/mmrndm/m160225a-eng.html).