Jamie Golombek: A number of chemical sensitivity will be debilitating, however taxpayer did not get the right medical certificates
Critiques and suggestions are unbiased and merchandise are independently chosen. Postmedia could earn an affiliate fee from purchases made by hyperlinks on this web page.
Article content material
The disability tax credit (DTC) is a non-refundable tax credit score that’s supposed to acknowledge the influence of assorted non-itemizable, disability-related prices. For 2024, the worth of the federal credit score is $1,481, however add the provincial or territorial tax financial savings, and the mixed annual worth will be price as much as $3,169, relying on the place you reside.
To qualify, it’s essential to full the Canada Income Company’s Form T2201, Incapacity Tax Credit score Certificates, upon which a medical practitioner should certify that you’ve got a “extreme and extended impairment in bodily or psychological operate.” As soon as the shape is accomplished, it’s despatched to the CRA, which can both approve the DTC or deny it. In case your software is denied, you’ll be able to enchantment the CRA’s choice to the Tax Court docket, which is precisely what occurred in a latest tax case determined late final month.
Commercial 2
Article content material
The taxpayer, a highschool historical past trainer, was identified with a number of chemical sensitivity (MCS) a number of years in the past. On account of this situation, she has a excessive diploma of sensitivity to quite a few triggers, together with most perfumes, bleaches, chlorine swimming pools, gases, cosmetics and hand sanitizers. She went to court docket to enchantment the CRA’s choice that she was not eligible for the DTC for the 2022 taxation 12 months.
Article content material
The taxpayer testified that she has suffered with MCS for quite a few years, first changing into conscious of the situation in 2011, when her medical practitioner talked about it as a doable rationalization for a collapsed lung she had suffered. She stated that, on the time, a prognosis of MCS was very uncommon, however she has since acquired affirmation of this prognosis from different medical practitioners.
She additionally testified that publicity to the triggers listed above will be debilitating and even life-threatening because of anaphylactic reactions that result in full or partial closing of her throat. These reactions significantly limit her potential to breathe, stroll and converse till she will escape from the triggering substance. She estimated she has skilled anaphylaxis 20 to 30 instances in her lifetime.
Prime Tales
Article content material
Commercial 3
Article content material
The taxpayer stated her MCS has a big impact on her every day dwelling, with the one efficient therapy being to keep away from chemical triggers. She stated the time that she has to spend retaining her surroundings protected is “overwhelming,” requiring lodging for all the things to maintain her protected.
For instance, as a way to be vaccinated in opposition to COVID-19, she needed to make particular preparations to obtain the vaccination outdoor to keep away from the hand sanitizers that may in any other case be utilized by each sufferers and medical workers on the clinic. She additionally has to make comparable preparations to get blood work, requiring home-care suppliers to return to her personal residence to attract the blood. Equally, she has a dental hygienist who does dwelling visits to keep away from the scents usually present in a dental workplace.
The taxpayer additionally described the lodging which were made by her employer in order that she will proceed to show. For instance, her faculty has instituted a scent-free coverage for employees and college students, and her time is especially spent aiding college students concerned in e-learning applications. She wears a masks when at college to cut back the danger of publicity.
Commercial 4
Article content material
She testified that MCS is “a everlasting situation,” which she’s had for about 20 years, and she or he expects to endure from it for the remainder of her life.
To qualify for the DTC beneath the Revenue Tax Act, a person will need to have a number of extreme and extended impairments in bodily or psychological capabilities, the consequences of which should be such that the person’s potential to carry out a number of fundamental actions of every day dwelling should be markedly restricted. As well as, the person should present a medical practitioner’s certificates, the T2201, certifying that every of those two necessities has been met.
The certificates is comprised of two components. Half A, the “Particular person’s part,” is 2 pages lengthy and captures the taxpayer’s figuring out data. Half B, the “Medical practitioner’s part,” includes pages 3 to 16, on which the medical practitioner certifies and describes how the consequences of the taxpayer’s impairment(s) “markedly limit the making use of particular person’s fundamental actions of every day dwelling.”
The issue on this case was that the taxpayer’s medical practitioner didn’t embody pages 3 by 14. When requested about this, the taxpayer stated, “They don’t mirror … that I’ve operate besides when uncovered to chemical substances. And so these pages didn’t apply to the chemical publicity wants that I’ve.”
Commercial 5
Article content material
The taxpayer’s T2201 did, nonetheless, embody pages 15 and 16, which have been accomplished by her medical practitioner and indicated that her situation was “a lifelong persistent medical sickness.” However the medical practitioner didn’t describe or certify how her potential “to carry out fundamental actions of every day dwelling is markedly restricted.”
Prior jurisprudence has concluded that as a way to qualify for the DTC, the certificates should specify the exercise or actions of every day dwelling which might be impaired and which might be restricted. On this case, the certificates clearly confirmed the taxpayer’s situation was extreme and extended, nevertheless it didn’t present the required certification with respect to the consequences of such a extreme and extended situation.
Really helpful from Editorial
“Though I’m sympathetic to the intense measures which the (taxpayer) should incorporate into and undertake as a part of her every day dwelling to keep away from publicity to a big listing of chemical substances so prevalent in our fashionable society, a certificates signed by a medical practitioner which doesn’t present certification as to the consequences of the (taxpayer’s) situation” just isn’t a sound certificates,” the choose concluded.
The choose, due to this fact, dominated that the taxpayer didn’t qualify for the DTC.
Jamie Golombek, FCPA, FCA, CFP, CLU, TEP, is the managing director, Tax & Property Planning with CIBC Non-public Wealth in Toronto. Jamie.Golombek@cibc.com.
In case you appreciated this story, join extra within the FP Investor e-newsletter.
Bookmark our web site and help our journalism: Don’t miss the enterprise information it’s worthwhile to know — add financialpost.com to your bookmarks and join our newsletters here.
Article content material
