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Canadians with lifelong disabilities can lose disability tax credit

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When Robert Morley got the news that his application for the federal disability tax credit (DTC) had been denied in December 2019, he felt a mix of emotions, he said.

“On the one hand, I wasn’t at all surprised. On the other, I had kind of hoped that [since] I’ve been approved once, they would know I have the disability.”

Morley, 49, was diagnosed with myalgic encephalomyelitis, commonly known as chronic fatigue syndrome, in 2010. The condition means even small, routine tasks of everyday living leave him utterly exhausted and in need of prolonged rest, he said.

“If I shower, I have to take a break,” he said. “If I cook a meal, I have to take a break. I can’t go out. I can’t see friends.”

And the illness makes him unable to work, he said.

But it wasn’t until 2015, after a byzantine bureaucratic process and multiple initial denials, that the Canada Revenue Agency approved him for the DTC, a non-refundable credit for people with disabilities and their families.

At the time, the agency made the approval retroactive to the 2006 tax year, when Morley’s condition started.



But CRA also told him he’d have to re-apply for the DTC in 2019, so the agency could reassess his eligibility for the tax break.

That deadline had been looming large for Morley’s partner, Patrick, who told Global News he started to feel anxious months ahead of the new DTC application as memories came back of the couple’s first, multi-year attempt to claim the credit.

“I felt stressed about this all year, knowing the difficulty we had the first time.”

The credit works out to around $1,500 to $2,000 per year, a significant amount for the couple, who lives on Patrick’s modest income as a communications coordinator at a non-profit, Morley said.

Despite their apprehension, the couple had held out hope their second time applying for the credit would go smoothly. After all, the CRA had already approved Morley once, and his doctor agreed the condition had not improved since then.

Instead, their application was denied. In August, the couple received a first denial letter from CRA, stating: “Although we do not question the seriousness of your medical condition, we must base the decision on the specific eligibility criteria in the Income Tax Act.”

“Based on the information we received,” the letter continues, “you do not meet the eligibility criteria because the cumulative effect of your restrictions is not equivalent to a marked restriction in one basic activity of daily living.”

That obscure language is familiar to anyone who’s been dealing with the DTC.

Canadians with disabilities have to pay a physician or other qualified health professional to certify that they are “markedly” restricted in at least one activity of daily living all or most of the time, or that the cumulative effect of restrictions across several activities is equivalent to being markedly restricted on one basic activity. (Those who require life-sustaining therapy at least three times a week, for a total of at least 14 hours a week, also qualify for the credit.)

A copy of Morley’s DTC application viewed by Global News shows his doctor deemed that while he doesn’t meet the bar for a “marked restriction,” the sum of his symptoms — which include cognitive impairment and difficulty walking — is equivalent to a marked restriction.






Accessing the DTC is a struggle, experts say, especially for those with ‘invisible disabilities’

Being approved for the DTC once does not guarantee reapproval, even for disabilities that are widely known to be lifelong conditions, said Jennifer Zwicker, director of health policy at the University of Calgary’s School of Public Policy.

Families with dependents with autism, for example, are often asked to reapply for the DTC every few years, Zwicker said.

“It’s concerning because it’s not like autism is going to go away.”

 

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In general, qualifying for the DTC has become significantly harder over the past five years or so, said Jason Heath, a financial planner in Thornhill, Ont., who’s helped many clients apply for the credit.

It was very common in the past for a child with a learning disability, for example, to qualify for the disability tax credit,” he said.

While the rules for accessing the DTC haven’t changed, the way the CRA interprets them seems to have become stricter, he added.

A 2018 paper co-authored by Zwicker found that only 40 per cent of adults who live with a severe disability in Canada use the DTC. The study also suggested the rules used by the CRA to assess eligibility for the credit are likely one of the main reasons for the poor uptake.

The application form has a check-the-box format that doesn’t fit the reality of many disabilities, the report suggested. Physicians sometimes struggle to describe how the applicant’s disability affects their daily lives, and sometimes they receive confusing follow-up requests from the CRA for additional information, according to the report.

There is also a lack of consistency and transparency in how the tax agency reviews applications.

In Morely’s case, documents reviewed by Global News show doctors struggling to fill the forms correctly. Morley also said the CRA failed to notify him of follow-up requests to the physicians, which made it difficult for him to ensure additional information would be sent back to the agency by deadline.

People with so-called “invisible disabilities” are especially likely to struggle to access the DTC, both Zwicker and Heath said.

Those who are deemed ineligible are denied not only the possibility to pay lower taxes but also access to a number of other, often more financially significant benefits.

Among them is the Registered Disability Savings Plan (RDSP), a registered savings plan that’s eligible for a lifetime maximum of up to $70,000 in government matching grants and $20,000 in government bonds.


Change afoot in Ottawa

The good news for Morley and others in a similar situation is Ottawa has taken steps to address the issues around the DTC.

In its 2019 budget, the Trudeau government proposed to axe a rule that requires those who lose their eligibility for the DTC to close their RDSP and return to the government any grants or bonds received in the previous 10 years.

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The new rules “intended to come into effect on January 1, 2021 and would become law when the enabling legislation receives Royal Assent,” a spokesperson at the Ministry of Finance told Global News via email.

In the meantime, RDSP issues aren’t required to close an RDSP account simply because its beneficiary is no longer eligible for the DTC, the ministry also said.

Still, those who lose eligibility for the DTC still stand to lose access to any future government RDSP contributions.

Efforts are underway to improve the DTC application and review process as well.

In 2017, public outcry over denials of DTC prompted the Liberal government to reinstate the Disability Advisory Committee (DAC), a body tasked with providing advice to the CRA that was disbanded by the Harper government in 2006.

Last year, the committee published a report with detailed recommendations for an overhaul of the DTC, including rewriting the eligibility criteria, streamlining the application process and making the tax credit refundable.

The report also notes: “a particular concern is a notable increase in the rejections of individuals reapplying for the DTC after receiving it for 5, 10, and 20-plus years, even though their medical condition remains the same.”

While some of the committee’s recommendations require legislative action, the CRA told Global News it’s on track to implement most, if not all, of the recommended administrative changes by the spring of 2020.

“The CRA is proud to support the important work of the Disability Advisory Committee and is committed to providing open, transparent and ongoing communications to Canadians on the progress made by the Committee to help improve the lives of Canadians living with disabilities,” the agency said via email.

Among the changes already adopted are a redesigned application form, the ability to file electronically and a new “navigator” role to liaise among the applicant, the CRA, and medical practitioners.

For his part, Morely said he and Patrick are planning to take their case to the Tax Court of Canada.

“There’s something so desperately wrong here.”

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Canada’s response to Trump deportation plan a key focus of revived cabinet committee

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OTTAWA, W.Va. – U.S. president-elect Donald Trump’s promise launch a mass deportation of millions of undocumented immigrants has the Canadian government looking at its own border.

Deputy Prime Minister Chrystia Freeland said Friday the issue is one of two “points of focus” for a recently revived cabinet committee on Canada-U.S. relations.

Freeland said she has also been speaking to premiers about the issue this week.

“I do want Canadians to know it is one of our two central points of focus. Ministers are working hard on it, and we absolutely believe that it’s an issue that Canadians are concerned about, Canadians are right to be concerned about it,” Freeland said, after the committee met for the first time since Trump left office in 2021.

She did not provide any details of the plan ministers are working on.

Public Safety Minister Dominic Leblanc, whose portfolio includes responsibility for the Canada Border Services Agency, co-chairs the committee. Freeland said that highlights the importance of border security to Canada-U.S. relations.

There was a significant increase in the number of irregular border crossings between 2016 and 2023, which the RCMP attributed in part to the policies of the first Trump administration.

The national police service said it has been working through multiple scenarios in case there is a change in irregular migration after Trump takes office once again, and any response to a “sudden increase in irregular migration” will be co-ordinated with border security and immigration officials.

However, Syed Hussan with the Migrant Rights Network said he does not anticipate a massive influx of people coming into Canada, chalking the current discussion up to anti-migrant panic.

“I’m not saying there won’t be some exceptions, that people will continue to cross. But here’s the thing, if you look at the people crossing currently into the U.S. from the Mexico border, these are mostly people who are recrossing post-deportation. The reason for that is, is that people have families and communities and jobs. So it seems very unlikely that people are going to move here,” he said.

Since the Safe Third Country Agreement was modified last year, far fewer people are making refugee claims in Canada through irregular border crossings.

The agreement between Canada and the U.S. acknowledges that both countries are safe places for refugees, and stipulates that asylum seekers must make a refugee claim in the country where they first arrive.

The number of people claiming asylum in Canada after coming through an irregular border crossing from the U.S. peaked at 14,000 between January and March 2023.

At that time, the rule was changed to only allow for refugee claims at regular ports of entry, with some specific exemptions.

This closed a loophole that had seen tens of thousands of people enter Canada at Roxham Road in Quebec between 2017 and 2023.

In the first six months of 2024, fewer than 700 people made refugee claims at irregular crossings.

There are 34,000 people waiting to have their refugee claims processed in Canada, according to government data.

In the first 10 months of this year, U.S. border officials recorded nearly 200,000 encounters with people making irregular crossings from Canada. Around 27,000 encounters took place at the border during the first 10 months of 2021.

Hussan said the change to the Safe Third Country Agreement made it less likely people will risk potentially dangerous crossings into Canada.

“Trying to make a life in Canada, it’s actually really difficult. It’s more difficult to be an undocumented person in Canada than the U.S. There’s actually more services in the U.S. currently, more access to jobs,” Hussan said.

Toronto-based immigration lawyer Robert Blanshay said he is receiving “tons and tons” of emails from Americans looking at possibly relocating to Canada since Trump won the election early Wednesday.

He estimates that about half are coming from members of the LGBTQ+ community.

“I spoke to a guy yesterday, he and his partner from Kansas City. And he said to me, ‘You know, things weren’t so hunky-dory here in Kansas City being gay to begin with. The entire political climate is just too scary for us,'” Blanshay said.

Blanshay said he advised the man he would likely not be eligible for express entry into Canada because he is at retirement age.

He also said many Americans contacted him to inquire about moving north of the border after Trump’s first electoral victory, but like last time, he does not anticipate many will actually follow through.

This report by The Canadian Press was first published Nov. 8, 2024



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Surrey recount confirms B.C. New Democrats win election majority

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VANCOUVER – The British Columbia New Democrats have a majority government of 47 seats after a recount in the riding of Surrey-Guildford gave the party’s candidate 22 more votes than the provincial Conservatives.

Confirmation of victory for Premier David Eby’s party comes nearly three weeks after election night when no majority could be declared.

Garry Begg of the NDP had officially gone into the recount yesterday with a 27-vote lead, although British Columbia’s chief electoral officer had said on Tuesday there were 28 unreported votes and these had reduced the margin to 21.

There are ongoing recounts in Kelowna Centre and Prince George-Mackenzie, but these races are led by John Rustad’s B.C. Conservatives and the outcomes will not change the majority status for the New Democrats.

The Election Act says the deadline to appeal results after a judicial recount must be filed with the court within two days after they are declared, but Andrew Watson with Elections BC says that due to Remembrance Day on Monday, that period ends at 4 p.m. Tuesday.

Eby has said his new cabinet will be announced on Nov. 18, with the 44 members of the Opposition caucus and two members from the B.C. Greens to be sworn in Nov. 12 and the New Democrat members of the legislature to be sworn in the next day.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.



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Port of Montreal employer submits ‘final’ offer to dockworkers, threatens lockout

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MONTREAL – The employers association at the Port of Montreal has issued the dockworkers’ union a “final, comprehensive offer,” threatening to lock out workers at 9 p.m. Sunday if a deal isn’t reached.

The Maritime Employers Association says its new offer includes a three per cent salary increase per year for four years and a 3.5 per cent increase for the two subsequent years. It says the offer would bring the total average compensation package of a longshore worker at the Port of Montreal to more than $200,000 per year at the end of the contract.

“The MEA agrees to this significant compensation increase in view of the availability required from its employees,” it wrote Thursday evening in a news release.

The association added that it is asking longshore workers to provide at least one hour’s notice when they will be absent from a shift — instead of one minute — to help reduce management issues “which have a major effect on daily operations.”

Syndicat des débardeurs du port de Montréal, which represents nearly 1,200 longshore workers, launched a partial unlimited strike on Oct. 31, which has paralyzed two terminals that represent 40 per cent of the port’s total container handling capacity.

A complete strike on overtime, affecting the whole port, began on Oct. 10.

The union has said it will accept the same increases that were granted to its counterparts in Halifax or Vancouver — 20 per cent over four years. It is also concerned with scheduling and work-life balance. Workers have been without a collective agreement since Dec. 31, 2023.

Only essential services and activities unrelated to longshoring will continue at the port after 9 p.m. Sunday in the event of a lockout, the employer said.

The ongoing dispute has had major impacts at Canada’s second-biggest port, which moves some $400 million in goods every day.

On Thursday, Montreal port authority CEO Julie Gascon reiterated her call for federal intervention to end the dispute, which has left all container handling capacity at international terminals at “a standstill.”

“I believe that the best agreements are negotiated at the table,” she said in a news release. “But let’s face it, there are no negotiations, and the government must act by offering both sides a path to true industrial peace.”

Federal Labour Minister Steven MacKinnon issued a statement Thursday, prior to the lockout notice, in which he criticized the slow pace of talks at the ports in Montreal and British Columbia, where more than 700 unionized port workers have been locked out since Nov. 4.

“Both sets of talks are progressing at an insufficient pace, indicating a concerning absence of urgency from the parties involved,” he wrote on the X social media platform.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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