Mr. Speaker, I am certainly pleased to stand today to speak to this private members' bill that the hon. member for Renfrew—Nipissing—Pembroke has brought forward. It is very important legislation.
Perhaps before starting, I would point out that I was very surprised to hear some of the comments by the hon. member for Victoria and the hon. member for Saint-Léonard—Saint-Michel. If one actually looks at the application form, there is a small part that has to be done by the promoters. Actually, as someone who has experience in the health care field, as I go through the section that the medical practitioners fill in, it is very logical. It is quite a simple form, in terms of the areas that are non-applicable and that one can really target. Thus I find their comments about the application process surprising.
I have heard from many people about the responsiveness of the CRA when they have called it, and how willing, able and quickly helpful CRA is when dealing with any of these issues. I do not know if the hon. members were trying to find areas of disagreement for disagreement's sake. I think sometimes it would be nice to just look at what is a really good piece of private members' business, not government business, and to look at it in the spirit with which it was brought forward.
Certainly our government understands that Canadians have a difficult time making ends meet. As a result we offer a very generous range of tax credits. In fact, the tax credits are key to our economic action plan, a plan for jobs and growth that is working for Canadians as we face the global economic downturn. I could go on at length about some of those very important measures, whether the universal child care tax benefit or the home buyers' tax credit. These have been very helpful, as I hear every day in my office.
Since forming government, we have continued to lower taxes for hard-working Canadians. The average family now pays $3,000 less in taxes each year.
We are certainly committed to enhancing the participation of people with disabilities. Through our policies and programs we support the full and equal involvement of those with disabilities in every aspect of Canadian life.
A key component of our strategy to assist the estimated 4 million Canadians with disabilities is the use of tax measures, particularly personal income tax provisions. As the House is aware, the Department of Finance is responsible for developing federal tax legislation in the areas of personal and corporate income tax. The Canada Revenue Agency administers this legislation and the various social and economic incentives delivered through the tax system.
One of the most important measures to help Canadians with disabilities is the disability tax credit. It recognizes that the cost of some disability related expenses can affect a person's ability to pay tax, and provides a tax reduction to people with a severe and prolonged impairment in physical or mental function. Their disability must be severe enough to restrict them in their basic activities of daily living or cause a person to take an inordinate amount of time to perform such activities, even with appropriate therapy, medication and devices. The restriction must be expected to last for a continuous period of at least 12 months and must be present at least 90% of the time.
People may also be eligible under the cumulative effect of two or more restrictions, which in combination are present 90% of the time. To claim this fund, the affected person or family members caring for him or her need to complete the disability tax credit certificate.
Members have talked about the process and the form, and how it certainly is a very sensible form. There is a section for a medical practitioner to fill out information on the impairment. Again, contrary to what the opposition members say, I think it is very sensible and well laid out. The first page is also very simple.
Once that step is complete and the CRA confirms that the person is eligible for the credit, the disability amount can be claimed on their income tax return. If for any reason someone with a disability or family member providing care needs assistance, there are agents who specialize in the disability tax credit. They are available to assist taxpayers and qualified practitioners by providing information on both the criteria and the application process. They are readily available and very helpful.
As Bill C-462 underscores, however, Canadians with disabilities applying for the credit are not always treated fairly. In recent years the Canada Revenue Agency has witnessed an increase in the number of businesses promoting their services to people with disabilities and their families who want to apply for the disability tax credit, or the DTC. Often, these businesses are focused primarily on completing the application form. Again, it is that early section, part A, I referred to. They are charging up to 40% of the amount of the person's income tax refund, often amounting to thousands of dollars, for something that is very simple to do. That can hardly be called fair. People with disabilities receive as little as 60% of the amount they are entitled to receive.
In 2012, the federal tax savings for someone eligible for the DTC will be up to $1,132 for adults, and can be as much as $1,792 for a child under the age of 18 and/or the family member supporting them. Of course, as we have mentioned already, these can be claimed retroactively, so thousands of dollars are at stake. For the one in five 5 Canadians with disabilities, living on lower incomes, this can be a tremendous amount of money. We should not forget that disabilities are also frequently an issue with seniors.
The Government of Canada is committed to ensuring that all Canadians are treated fairly by the tax system. The disability tax credit should be given to the person for whom it was intended. To make sure that happens, Bill C-462 would restrict the fees that can be charged or accepted by businesses that request a determination of DTC eligibility on behalf of someone with a disability. That is the key point, which also speaks to some members' concerns about whom this is targeting. It is not targeting practitioners but the person who has submitted the eligibility form on behalf of someone with a disability.
The legislation would prohibit firms from charging or accepting more than an established maximum fee. That would be determined following consultations. We certainly do not want to interfere with a fair and free market and inadvertently hurt businesses that charge reasonable amounts consistent with the value of the services they provide. Our goal is simply to ensure that when Canadians with disabilities are eligible for the tax credit, especially if their claim goes back many years, they receive the maximum amount due to them.
To discourage those companies that charge their clients more than a reasonable fee, Bill C-462 would require businesses to notify the CRA of any fee charged in excess of the maximum amount permitted. If they fail to do so they would face fines of $1,000 to $25,000 for not notifying the CRA, or for any false or deceptive statements. A separate fine equal to 100% to 200% of the excess fees could also be applied in addition to the penalty. Such fines would be applied in serious cases, such as repeat offenders.
There is very little to fault in the legislation, which is why it earns my endorsement, with several small caveats. To enhance the bill's effectiveness, our government proposes three amendments. First, we want to strengthen the monetary value of the penalty so that it will represent more than just a return of profits. Without this amendment the penalty as written could be perceived as an unacceptable business risk. We also want to make sure that the provisions of the bill apply to all types of DTC promoters and preparers, regardless of how their businesses are structured. Finally, we want to ensure that the CRA is allowed to make full use of the information at its disposal to identify non-compliance and to enforce the provisions of the bill.
With these improvements, Bill C-462 earns my wholehearted support. I trust I can count on all members of Parliament to give their stamp of approval to this very worthy legislation.