Eligibility for the Disability Tax Credit and Registered Disability Savings Plan

On November 25th, 2010 the Honourable Jim Flaherty, Minister of Finance made the following statement,

“The Tax Court of Canada has recently held that existing income tax law would not allow an individual to appeal a determination concerning an individual’s eligibility for the Disability Tax Credit unless that determination affected the individual’s tax payable. As a result, individuals whose income is too low to pay tax are effectively barred from establishing an RDSP where their eligibility for the Disability Tax Credit has not been accepted by the Canada Revenue Agency. 

“Procedural issues of this nature should not be an impediment for individuals who wish to establish their right to the Disability Tax Credit and, as a result, also their right to open an RDSP. 

“To promote the fair and equitable treatment of Canadians, I intend to introduce legislative amendments at the earliest opportunity so that individuals can, in every case, appeal a determination concerning their eligibility for the Disability Tax Credit.”

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