Ottawa, November 25, 2010
2010-113

Archived - Statement by the Honourable Jim Flaherty, Minister of Finance, Concerning Eligibility for the Disability Tax Credit and Registered Disability Savings Plan

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“The Registered Disability Savings Plan (RDSP) is an important initiative that allows tax sheltered savings for individuals eligible for the Disability Tax Credit. Tens of thousands of Canadians with disabilities now have RDSPs and the number of plans continues to grow.

“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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For further information, media may contact:

Annette Robertson
Press Secretary
Office of the Minister of Finance
613-996-7861

Jack Aubry
Media Relations
Department of Finance
613-996-8080

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