The fact that a person is unable to work due to medical reasons or is receiving Canada pension plan, CPP, benefits or payments from other types of disability or insurance plans does not necessarily mean the person qualifies for the disability tax credit, DTC.
The CPP disability program is intended to provide benefits to individuals who are no longer able to work because of a “disability”. Criteria for the DTC, however, do not consider an individual’s ability to work. The issue is whether an individual is affected in a “basic activity of daily living”, e.g. walking, hearing, et cetera.
For example, an individual who was born “legally blind” would qualify for the DTC, but might not be eligible to receive CPP disability payments. Conversely, an individual who was no longer able to work because of a bad back might qualify for a CPP disability pension, but may not qualify for the DTC if he or she could perform all of the “basic activities of daily living”.
The role of the Canada Customs and Revenue Agency is to administer the Income Tax Act as enacted by parliament. The policy rationale behind the legislation falls under the jurisdiction of the Minister of Finance.