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About COVID 19 and Tax
After six years in the works, COVID-19 has further delayed implementation of new rules limiting what third-party companies can charge to help people access the disability tax credit, and a Nova Scotia doctor and two national organizations are calling for federal officials to finally act.
But the CRA said it still doesn’t know when the proposed Disability Tax Credit Promoters Restrictions Regulations, which stem from federal legislation passed in 2014, will be ready and will come into force.
“At this time, the Canada Revenue Agency is unable to confirm when priorities will shift back to non-COVID-related matters,” CRA spokesperson Dany Morin said in an email to CBC.
More than a million Canadians receive the disability tax credit, which can be worth thousands of dollars and is designed to help people who have mental and physical impairments that are ”severe and prolonged.”
There are a number of companies in Canada that offer to help people with disabilities apply for the credit. If they are successful, the companies charge fees of between 15 and 40 per cent of the credit.
Last June, the CRA sought feedback on a proposal to slash what it called “excessive” fees and bring them down to a $100 charge for an application to determine eligibility, another $100 to actually apply and then $100 for each year the credit is retroactive.