Annual lists 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995

Ottawa, November 29, 2002
2002-099 

Minister of Finance to Consult on Disability Tax Credit Proposals

Related Documents:

• Backgrounder - Disability Tax Credit
• Annex 1
• Annex 2
• Annex 3

John Manley, Deputy Prime Minister and Minister of Finance, confirmed today that proposals to amend the Income Tax Act released on August 30, 2002 regarding the disability tax credit (DTC) are no longer under consideration and that new consultations are being launched to develop revised proposals.

The proposed amendments responded to a March 2002 decision by the Federal Court of Appeal that would expand eligibility for the DTC to people who, because of food allergies or other similar medical conditions, must spend an inordinate amount of time to find, procure and prepare suitable food. The proposals were intended to ensure that the DTC continues to be targeted to those individuals who suffer from a severe and prolonged impairment, the effects of which markedly restrict their ability to perform a basic activity of daily living.

"Since proposing the amendments in August, we have had feedback from members of Parliament, stakeholders and other interested parties. I have listened closely to what people have said, and I will take a fresh look at how we can best deal with the issues arising from the court decision," said Minister Manley.

"In this context, I am asking the Department of Finance to consult further to develop revised proposals that will be considered for inclusion in the next budget," the Minister added. Minister Manley said that the purpose of the review is not reduce the Government's support for persons with disabilities, but rather to ensure that support continues to be provided to those most in need.

The DTC recognizes that people with a severe and prolonged impairment incur disability-related expenses that reduce their ability to pay tax. The credit reduces an individual's federal income tax by up to almost $1,000 a year. In total, the DTC provides $400 million a year in federal tax assistance to about 450,000 eligible Canadians.

Written submissions will be accepted until January 17, 2003. Details on submitting comments and the Government's consultation process can be found on the Department of Finance Web site at www.fin.gc.ca.

The attached backgrounder provides further details.

___________________
For further information:

If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada Web site at http://www.fin.gc.ca/scripts/register_e.asp