One of the recommendations in the first annual report of the Disability Advisory Committee was to draft the regulations necessary to cap the fees charged by advisors for assistance with a DTC application under the Disability Tax Credit Promoters Restrictions Act which received Royal Assent in 2014 (see VTN 395(2)).

On June 1, 2019, the Canada Gazette (Vol. 153, No. 22) was released, including draft regulations and an analysis of the reasoning behind them. The Regulations would establish the maximum fee in respect of the DTC as:

• $100 for a request for determination of DTC eligibility (Subsection 152(1.01)); and
• $100 per taxation year for a DTC claim for the individual (Subsection 118.3(1)) or a dependant (Subsection 118.3(2)), or in respect of any claim that is contingent on DTC eligibility for that individual or a dependant.

this proposed fee restriction

The Canada Gazette notes that, as a result, the maximum fee charged could range from $200 for completing Part A of Form T2201 and the tax return for the current year to $1,100 for completing Part A in conjunction with a request for adjustments of ten previous taxation years.

This maximum is to be adjusted for inflation in 2025 and every fifth subsequent year.

reviewing your billing practices for these clients

Commentary released with the proposed regulations notes that this maximum fee does not apply to the parts of a personal income tax return not contingent on eligibility for the DTC. It also indicates that medical practitioners’ fees are not restricted where they assist only in the completion of Part B of Form T2201. The regulations would come into force at the same time as the related legislation, which has not yet been set.

A June 7, 2019 Financial Post article (Mini-industry of disability tax credit consultants who've been collecting millions in fees finally put on notice, Jamie Golombek) and a June 3, 2019 Blacklock’s Reporter article (CRA Fee Cap Called Ruinous) provide commentary regarding the proposed regulations.