Mr. Speaker, as the member of Parliament for Renfrew—Nipissing—Pembroke, it is my pleasure to rise today and conclude the debate on my private member's bill, Bill C-462, an act restricting the fees charged by promoters of the disability tax credit and making consequential amendments to the Tax Court of Canada Act.
My bill seeks to balance the needs of Canadians with disabilities and promoters alike by also contributing to a fair, functioning marketplace for those who do wish to use the services of a disability tax credit promoter.
Bill C-462 is necessary because changes that were made in 2005 placed benefits receivable on a retroactive basis. This change created a new incentive for those claiming to be consultants to work with Canadians on their applications, as the dollar amounts on a 10-year retroactive tax refund can be significant and can reach $10,000 to $15,000.
Let me be clear: this is not an attempt to crack down on those who are legitimately claiming the credit or to deny claims; rather, it is an attempt to make sure that those who do qualify and those who require the tax credit are able to receive it without paying unfair charges.
The disability tax credit promoters' industry is currently totally unregulated and has produced a system that is increasingly ripe for abuse. In the past, government has determined it appropriate to regulate the tax preparation marketplace. The hon. members for Kings—Hants, Jeanne-Le Ber, and Cape Breton—Canso are concerned that the legislation does not specify what the maximum fees would be or how they would be set. I chose not to set a maximum fee in the legislation because I want to allow for consultations with disability groups, medical professionals, and legitimate tax professionals to help inform this decision. I want to ensure that those disabled Canadians who need help with their applications can get it. We are not imposing unnecessary red tape on doctors or legitimate tax preparers.
I would be pleased to receive direction from tax professionals with respect to the fee level, and I agree with the member for Kings—Hants that the maximum fee should reflect the complexity of the case in hand. We will ensure that the maximum fee structure will be set in an open and transparent process, involving a broad range of stakeholders.
Members of the public and tax credit promoters will also be given a chance to share their views once the regulations are drafted. They will be given plenty of notice so that they can adapt to the new regulations when they come into effect. I know that the hon. members from Montcalm and Abitibi—Témiscamingue also raised concerns about this issue in second reading debate.
As the member of Parliament for Renfrew—Nipissing—Pembroke, which includes CFB Petawawa, I am acutely aware of the effect that disabilities can have on the livelihoods of Canadians. The soldiers of my community are at greater risk for a number of disabilities because of the unique challenges of their duties. My decision to introduce this legislation is a direct result of the aggressive tactics employed by some promoters, who objected to my decision to issue consumer alerts. I started issuing consumer alerts in my riding last year when I found out that some individuals were being charged 20%, 30%, or as much as 40% of the tax credit. Based on the unanimous vote that Bill C-462 received to be referred to committee, I know that other members agree with my concerns.
These kinds of charges are unfair, especially when we consider that the purpose of the disability tax credit is to support Canadians living with disabilities.
I want my constituents and indeed all Canadians to know that they can access their federal member of Parliament for assistance regarding any federal tax credit without being charged a percentage of the credit.
In conclusion, I wish to thank all members for their support of Bill C-462.