Mr. Speaker, let me begin by emphasizing that the confidentiality provisions of the Income Tax Act prevent me from commenting on individual cases. Nonetheless, I will gladly discuss the disability tax credit in more general terms.
The Canada Customs and Revenue Agency's responsibility is to administer the disability tax credit, DTC, in accordance with the legislation. The Income Tax Act requires that if someone wants to claim the DTC, a medical practitioner must use the prescribed form to certify that person's severe and prolonged impairment. From time to time CCRA needs clarification and has to request additional information from the medical practitioner.
CCRA does not question the diagnosis or the medical practitioner's expertise. Rather, CCRA is attempting to fulfill its responsibility for ensuring that the legislation's specific eligibility criteria for the DTC are met.
As the hon. member is aware, the CCRA has been conducting a review of DTC claims for the period between 1985 and 1996. During that 12 year period, clients who applied for the DTC were accepted when their tax return was assessed. A small percentage of DTC claims were later selected for indepth review.
Our procedures have changed since 1996. Every new application is now reviewed right away to make a clear determination of the client's eligibility right up front.
The review of claims prior to 1996 is not about denying this tax credit to people who have a legitimate right to it. Instead, the review is about discontinuing payment to people who do not meet the DTC requirements. Our review of pre-1996 claims is finding many people who should not have been approved in the first place, as well as people who should have been approved for only a temporary period.
When a DTC claim has been denied, a person can request an impartial review of their eligibility by filing a notice of objection with the CCRA. If the claim is still disallowed, the next recourse would be to file an appeal with the Tax Court of Canada.
The CCRA is responsible for administering the DTC and other tax programs in strict accordance with the existing legislation. This type of responsible enforcement activity is an essential element of the CCRA's mission to promote compliance with Canada's tax, trade and border legislation and regulations.
Let me once again emphasize that the special review of older DTC claims is not designed to limit the number of people who benefit from this tax credit. Instead, the review is about ensuring that all DTC claims have undergone the same level of review for eligibility. That means fairness and equity for everyone.