February 2019 Newsletter

Taxpayer’s anxiety and panic disorder qualified for disability tax credit

To qualify for the disability tax credit (DTC), an individual must have a prolonged and severe impairment in physical or mental functions, resulting in a marked or significant restriction in one or more basic activities of daily living. Furthermore, the impairment must be certified, in prescribed form, by a physician.

In the recent Cochrane case, the taxpayer claimed the DTC because she had serious depression and anxiety, which led to a panic disorder that in turn allegedly affected her basic daily activities. The CRA denied the claim, and Ms. Cochrane appealed to the Tax Court of Canada.

The Tax Court judge accepted evidence from the physician and concluded that Ms. Cochrane qualified for the DTC because she “had a severe and prolonged impairment…causing her to largely be unable to leave her house. This is indicative of a marked restriction in mental functions necessary for everyday life, being a basic activity of daily living.”

Last modified on February 22, 2019 12:00 am
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