We can file an appeal (referred to as a “Notice of Objection” by the Canada Revenue Agency (“CRA”)) on your behalf if your Disability Tax Credit (“DTC”) application has been denied. Depending on the date of the denial letter and the taxation year for which the application was filed, you have at least ninety days to file an appeal. A request can be filed on your behalf to extend the filing deadline by up to one year if you miss your filing deadline.
The Appeal Process
Once we file a Notice of Objection on your behalf, the CRA will acknowledge receipt of your appeal and assign an appeals officer. Given the current file volume at the CRA, it takes anywhere from six to nine months to have an appeals officer assigned to your file. Once assigned, the appeals officer is responsible for conducting an independent review of your file and to make an objective decision having considered all the facts and issues relevant to your appeal. The appeals officer will often contact us to discuss the issues and request more documentation if necessary.
New Legislation
Prior to the passing of the current budget on June 26, 2011, a taxpayer who did not pay income tax could not file a Notice of Objection regarding a denied DTC application. The budget introduced new legislation to allow for taxpayers with no income tax payable to file a notice of objection and appeal a decision by the CRA regarding disallowed DTC applications. There are transistional rules that apply until December 26, 2011 to allow us to file appeals for previously denied DTC applications filed from as early as 2008. If you are in this situation, contact us immediately to review your file before the deadline expires on December 26, 2011.
What if the Appeal is Denied?
If you are not satisfied with the decision of the appeals officer, you can appeal the decision to the Tax Court of Canada (“TCC”). We are currently working on a pilot program with a leading tax law firm to provide counselling services for our clients that wish to file an appeal to the TCC.