The Disability Tax Credit© 2011 - Paladin Disability Tax Credit Solutions Inc. ™, All rights reserved.

Disability in Canada

• In 2006, 4.4 Million Canadians reported an activity limiting disability. This yields a general disability rate of 14.3%. Stats Can, 2006 Survey

• The 2001 disability rate was 12.4%. Stats Can, 2001 Survey

• Therefore there was a 15% increase in the general disability rate in the 5 years (2001-2006).

• The general disability rate is expected to continue a significant upward trend due to the aging of the Canadian population.

How Many Qualify?

• In 2001, 343,800 Canadians were recipients of the federal Disability Tax Credit. Federal Finance Ministry Statistics 2001

• The Federal Finance Ministry estimates that a further 498,000 – 745,000 Canadians would qualify for the DTC in 2001.

• We estimate that there are approximately 5.06 Million disabled Canadians in 2010 of which approximately 647,400 – 968,500 would qualify for the DTC who have not yet applied. Paladin Extrapolation Estimate

• This means, it is likely that that 95% of those who qualify for a DTC have not yet applied.

The Gateway Designation

• The Disability Amount $ 7766.00 (2014)

• Supplement for persons under 18 $ 4,530.00 (2014)

• The Caregiver Amount $ 6,588.00 (2014)

• The Child Disability Tax Benefit $ 2,640.00 Annually (2014) Paid monthly

• Disability Supports Deduction• Amount for Infirm Dependents age 18 or Older $ 6,589.00 (2014)

• Registered Disability Savings Plans – annual grants of up to $ 4,500.00

Retroactivity• The Income Tax Act permits retroactive DTC applications back to the

date of impairment.• Retroactive Tax Credits can be claimed back up to 10 years. • Retroactive applications can be made for the deceased.

Qualification

You qualify if you are markedly restricted in your ability to:•See•Hear•Walk•Eliminate (Bowel & Bladder control)•Feed Yourself•Dress Yourself•Think and/or Reason

Qualification cont’d

• Undergoing Life Sustaining Therapy

• Or the Cumulative effects of significant restrictions in two or more basic activities of daily living.

• An qualifying impairment must have lasted or be expected to last for a continuous period of at least 12 months.

Markedly vs. Significantly Restricted

• You’re Markedly Restricted if, all or substantially all of the time, you are unable (or it takes you an inordinate amount of time) to perform one or more of the basic activities of daily living.

• Significantly restricted means that although you do not quite meet the criteria for markedly restricted, your ability to perform a basic activity of daily living is still substantially restricted.

Some Examples

Hearing:

You are considered markedly restricted in hearing if all or substantially all of the time you are unable to hear so as to understand another person familiar to you, in a quiet setting , even with the use of appropriate devices. Or it takes an inordinate amount of time to hear under these circumstances.

Some ExamplesWalking:

You’re markedly restricted in walking if, all or substantially all of the time you are unable to walk even with appropriate therapy, medication and devices or you take significantly longer than an average person with no impairment to walk.

For example, you can walk 100 metres (1 city block), but only by taking a significant amount of time, stopping because of shortness of breath or because of pain, all or substantially all of the time.

Life Sustaining Therapy

• You need Life Sustaining Therapy to support a vital function, even if the therapy has alleviated the symptoms.

• Examples include, Kidney Dialysis and Type 1 Diabetes in a child who cannot independently adjust the insulin dosage.

The ProcessUnlike most tax credits, you must apply for the DTC in advance and be

approved by the Canada Revenue Agency before you may claim the Disability Amount or file any retroactive income tax refund claims.

i.) Complimentary Eligibility Assessment.

ii.) Client Interview & Qualification.

iii.) Medical Review.

iv.) DTC completed by Attending Physician and filed with CRA.

v.) DTC approval and retroactive income tax amendments preparation and transfer of unused credits filed with CRA.

vi.) Received retroactive tax refund.

vii.) Referral to other federal and provincial disability programs.

Pitfalls• 40% of qualified DTC self applicants are denied by CRA. Not Just The News 2011

• Medical evidence must be presented in the language of the legislation. Otherwise a DTC application will be denied.

• Schlegel v. Her Majesty The Queen (2004TCC393)

[4] The Court said that without this form properly completed by the doctor, and giving answers that satisfy the legislation, there is no tax credit available.

And specifically, Attorney General of Canada v. MacIsaac et al (2000DTC6020)

[5]…Simply put, there must be a certificate by the doctor that the individual suffers impairments in the language of these subsections…

PitfallsInadequate Accounting / Tax Preparation:•Not claiming or providing adequate documentation to maximize retroactivity.•Not filing appropriate retroactive income tax amendments or transfer credits.•Not claiming the appropriate tax credits on an ongoing basis.•Not renewing the DTC if required by CRA.

A DTC appeal may require an application to the Federal Court of Appeal.

Outcomes

• Depending on your specific tax and disability circumstances, you can

obtain retroactive tax refunds of up to $ 35,000.00 plus an ongoing

disability tax credit of $ 7,766.00 per year (2014).

• Unused disability tax credits can be transferred to close family members to reduce their tax liabilities and received retroactive tax refunds.

Who We Are

• Paladin disability is a Federally chartered Disability Tax Credit firm.

• Our sole purpose is to assist you in navigating the complex DTC application process.

• The professionals at Paladin bring decades of medical, legal and tax experience to qualify you and ensure that your DTC application has the best chance for success.

Our Approach

• Paladin employs a collaborative approach utilizing a multi-disciplined team of professionals to maximize your chances for success.

• Our Medical Liaison is a trained medical professional with the necessary experience to review the relevant medical evidence and liaise with both your attending Physician and the Canada Revenue Agency.

Our Approach

• Our Tax Liaison reviews your tax records and prepares and files retroactive income tax amendments and appropriate transfers of unused tax credits.

• Our Legal Advisor is available throughout the application process to address legal issues which pertain to your DTC application as they arise.

Our Approach

• Paladin also utilizes a proprietary medical / legal database which is customised for each client thereby giving our medical, legal and tax staff access to the most recent medical information, court decisions and tax bulletins that pertain directly to your specific disability and personal circumstance.

Cost

• Our fees are contingent upon your successful DTC application.• The percentage contingency fee (20-33%) is dependent upon your specific

tax and disability circumstances and is spelled out in your Retainer Agreement.

• An average file usually takes 3-6 months to complete, although some files may take longer.

Our Guarantee

• We believe that our comprehensive approach maximizes your chances for success.

• You can rest assured, all of our contracted work is insured and is reviewable by an independent Arbitrator at your request.

• You don’t pay unless we’re successful and that includes disbursements.

• Don’t pay more income tax than you are required to.

• Let us help you recover the excess taxes you paid in error.

• Call us toll free (800) 267-7053 for your free eligibility assessment.

Questions

How may we be of service?