Preface: I am writing this in a careful way, since the firms I am NOT mentioning by name seem quite litigious in nature (i.e. they like suing folks). I am very UNHAPPY to read about these “services”. The firms claim to help get their clients their Disability Tax Credit, DTC, but for ludicrous fees. There is an ACT in place Bill C-462 : Protecting Disabled Canadians or a Paper Tiger but it is inactive.
I have written about how to get the Disability Tax Credit ( DTC ) from the CRA and the steps I have to take to receive them for my son. My apologies if I portrayed the process as being extremely hard. I fear I have inadvertently also brought into play a whole new Service Provider, that of the “Disability Tax Credit Adviser”.
These Advisory firms offer their services, to help the disabled (or parents of disabled folks) get their Disability Tax Credits from the CRA. While these firms seem to want to help the disabled get the tax breaks that they deserve, they do it for a very steep price.
Most of these services will not charge a “client” anything up front, and they will either help your Doctor fill in the forms, or better still they will supply their own “Doctor” for a diagnosis. This again sounds fair, in that some Doctors may not know the correct verbiage to use, however, this still must be the professional’s opinion (as they are the one who signs the form).
How much does the Disability Tax Credit Service company make ? I have a few samples from a few of the sites I am aware of:
- “…our fee is 20% of the amount you receive…”
- Others can charge up to 30% “of the amount you receive”
This (in my opinion) is a ridiculously high fee for a service that should be done by you (or by an accountant). If you go to the Testimonial sections of many of these sites, you will see that folks can receive large settlements from the CRA, (upwards of $10,000) thus giving these firms 25% of this settlement.
I hope that folks who are “at wit’s end” do not turn to one of these firms, when they could do it themselves, or maybe they should contact an Accountant (or Tax expert) to try to get their Tax Credits.
There are allegations that the “commission” charged, by some of these firms, is not just on Disability Tax Credit part of the tax refund, it is in fact 20-30% of ALL of the tax refund received by the “client”. There are stories of the CRA auditing the Disability Claims prepared by some of these firms, and disallowing the claims (and asking for all settlement money be returned to the CRA (the credit, including any fees paid)).
I have been quite critical of the Pay Day Loan services, for preying on desperate people. If the allegations that I have read are true (I include links to articles in the Star and the CBC for you to form your own opinions) these folks should have a special place in Hell for taking advantage of Disabled Folks (and their families), this way and let me be a little more clear:
I implore anyone seeking help to receive the Disability Tax Credit to not use any service that charges a “percentage of settlement” fee for their services.
Do it yourself!!! Or Find a service with a set flat fee!
Articles from newspapers about some “Disability Tax Credit Services” firms and the allegations levelled against them:
- Article from the Toronto Star about one firm (the firm is fighting the allegations made in court)
- CBC overview on another firm (that has advertised on this very site).
If there are folks who have used these services, please comment about your experience.
I noticed that many of these “Disability Tax Credit Service Companies” seem to come up in advertising on my site (especially those articles that talked about the RDSP or Disability Tax Credit), and these firms advertise themselves as an advocate for disabled Canadians. I have blocked their ads and as new firms come up, I will investigate (as best I can) and will block any that I feel charge a ridiculous service fee.
If there are other ads on this site you find offensive, feel free to leave a comment, I will investigate them and block them, if I agree with you.