HUMA Committee Report

(a)     The CCRA send a letter to every individual who received the letter dated
          19 October  2001 requesting DTC recertification. This correspondence
          should apologize for the tone of the letter and provide a complete explanation
          as to why the CCRA requested recertification.

(b)     All individuals who obtain recertification as a result of the October 19 letter be
          compensated upon the production of a receipt for any costs incurred in
          obtaining the services of a qualified person to complete Form T2201 or for
          providing the CCRA with any supplementary information.

(c)     The CCRA inform all recipients of the October 19 letter that anyone who has
          been reassessed and refused the DTC can reapply once Form T2201 is
          redesigned (See Recommendation 5). In the meantime, the CCRA should also
          advise these individuals of their right to appeal the decision.

2.     The Committee recommends that no new requests for recertification be sent to individuals
         who have claimed the DTC in whole or in part during the period 1986 to 1996 until Form
         T2201 is redesigned (See Recommendation 5).

3.     The Committee recommends that the government immediately amend the Income Tax Act
         to incorporate judicial decisions. For greater clarity, the Committee recommends that the
         government:

(a)     Add "breathing" to the list of basic activities of daily living in paragraph 118.4(c);

(b)     Amend the wording in subparagraphs 118.4(1)(c)(i) and (ii) to replace "thinking,
          perceiving and remembering" and "feeding and dressing oneself" by "thinking,
          perceiving or remembering" and "feeding or dressing oneself."

4.     The Committee recommends that following consultations (See Recommendation 6) the
        government amend the Income Tax Act to:

(a)     Define "markedly restricted" in the context of each of the basic activities of daily
          living or some combination thereof. The Committee believes that these changes
          must clarify the meaning of "all or substantially all of the time" to reflect the reality
          of living with a disability;

(b)     Redefine "prolonged" in order to capture individuals who have an impairment that
          is substantial and recurrent, although not necessarily lasting for a period of 12
          continuous months;

(c)     Reword subparagraphs 118.4(1)(c)(iii) and (iv) in order to better reflect the everyday
          situations of individuals with severe speaking and hearing impairments; and

(d)     Add "registered nurse" to the list of qualified persons for those residing in a
          remote part of Canada where access to other medical professionals, especially
          a medical doctor, is extremely limited.

5.     The Committee recommends that all forms used to assess eligibility for the Disability Tax
         Credit be redesigned. The new Form T2201 should conform to the Income Tax Act, be
         less prescriptive and afford greater prominence to, and space for, a qualified person’s
         diagnosis. If necessary, the form should be either expanded or separated into different
         forms so that it (or they) contain questions related to an individual’s specific disability. A
         revised form should be referred to the Standing Committee on Human Resources
         Development and the Status of Persons with Disabilities before 1 December 2002 for
         consideration and study before it is publicly distributed.

6.     The Committee recommends that the CCRA and the Department of Finance take
         immediate steps to consult widely to develop amendments to the Income Tax Act (see
         Recommendation 4), a better DTC application process and application form. This
         consultation should include representatives of organizations concerned with various
         types of disability, representatives of professional groups of medical practitioners qualified
         to certify eligibility for the DTC, and the Office for Disability Issues. The consultation exercise
         should pay particular attention to the need to develop eligibility criteria and an application
         form that treat mental illness, and cognitive disabilities in an appropriate manner. The CCRA
         and the Department of Finance should submit a written report to this Standing Committee
         about the nature and results of its consultative process by 1 December 2002.

7.     The Committee recommends that the CCRA and the Department of Finance establish a
         joint senior level advisory group to conduct ongoing consultations among senior level
         officials (including the Office for Disability Issues), advocacy groups, representatives of
         organizations of professional groups of medical practitioners who complete Form T2201,
         and individuals. This advisory group should deal with ongoing issues dealing with DTC
         program administration and effectiveness to ensure that the DTC is meeting its stated
         purpose and objectives.

8.     The Committee recommends that beginning with the tax year 2002, the government pay
         the cost for the services of a medical practitioner who provides the CCRA with any
         additional information beyond completing Form T2201 when this information results in a
         DTC claim or appeal being granted. This includes any charge for providing CCRA with
         supplementary information about an individual’s DTC recertification or a medical appraisal
         for the purpose of appealing the denial of a DTC claim. For greater clarity, applicants or
         appellants would not be able to claim these costs for providing any additional information
         beyond a completed Form T2201 until their DTC claim is approved.

9.     The Committee recommends that in order to use health-care resources more efficiently
         and reduce potential costs for DTC claimants, the recertification process be streamlined to
         easily identify the instances where an individual’s disability has remained unchanged or
         worsened.

10.    The Committee recommends that the CCRA put in place an information and education
          strategy and campaign for the 2002 tax year. Prepared in co-operation with the disability
          community and medical practitioners, this information strategy should:

(a)    Educate the general public about the purpose, nature and provisions of the
         Disability Tax Credit;

(b)    Provide information to assist persons qualified to certify individuals’ eligibility
         for the DTC (particularly those dealing with mental, psychiatric and learning
         disabilities) to understand the nature of the certification process and the nature
         of the information required for certification.

(c)    Include a detailed guide for tax preparers, financial advisors and their clients
         that outlines program eligibility criteria and preliminary steps to enable taxpayers
         to decide whether or not to apply for the credit.

11.     The Committee recommends that the CCRA deal appropriately with appeals by:

(a)    Including in information materials produced by the CCRA information about the
         right to appeal for those whose DTC application has been denied. This information
         should be placed in a prominent position on Form T2201.

(b)    Modifying the appeal procedure for those denied the Disability Tax Credit to
         accommodate persons with disabilities (for example, extending the time limit).
         These potential modifications should be discussed and agreed to by the advisory
         group as mentioned in Recommendation 7 of this report.

12.    The Committee recommends that by 1 January 2003, any decision by the CCRA to grant
          or deny an individual’s application for the Disability Tax Credit be made by a qualified person
          as set out in the Income Tax Act (118.3(1)(a.2)) (currently a medical doctor, optometrist,
          audiologist, occupational therapist, psychologist or speech therapist).

13.    The Committee recommends that when the CCRA rejects an application for the DTC,
          the Agency provide the claimant with a written explanation setting out the reasons that
          the application has been refused and setting out the applicant’s rights and procedures for
          an appeal.

14.    The Committee recommends that the CCRA provide all employees who administer the
         DTC with training regarding the nature of disability, the purpose of the DTC, and the
         administrative challenges in ensuring fair administration. This training should involve
         members of the disability community and should pay particular attention to the
         complexities associated with assessing cognitive and mental disabilities.

15.    The Committee recommends that the Department of Finance conduct a comprehensive
         evaluation of the Disability Tax Credit and that this evaluation be tabled with the Standing
         Committee on Human Resources Development and the Status of Persons with Disabilities
         no later than 31 December 2002.