Green – Tax Court of Canada finds that a severe anxiety disorder qualified the taxpayer for the disability tax credit

Whether the taxpayer was entitled to the disability tax credit turned on whether her anxiety disorder represented a mental impairment that markedly restricted her ability to perform one or more basic activities of daily living substantially all the time. The particular focus was on whether she satisfied this test re mental functioning as defined in s. 118.4(1)(c.1)(iii) (“adaptive functioning”) OR s. 118.4(1)(c.1)(ii) (“problem-solving, goal-setting and judgment (taken together)”). Monaghan J found that the taxpayer satisfied both tests, respecting her 2015 and subsequent taxation years (but not the prior 5 years, where the effects were less severe).

Respecting the satisfaction of the s. 118.4(1)(c.1)(iii), she stated that the taxpayer’s disorder impaired her abilities respecting “self-care, health, safety, social skills, and common simple transactions in life (i.e., the mental function necessary for daily living) and her independence to do so.”

Respecting the s. 118.4(1)(c.1)(iii) test, Monaghan J stated:

Ms. Green’s behaviour is not illogical, but her choices are affected by her anxiety. … Her anxiety causes a lot of avoidance, procrastination and withdrawal, which assists Ms. Green in coping with her anxieties, but has led to other problems, such as failing school, loss of employment, self-harm activities, reluctance to pursue therapy, and taking on too many projects.

Neal Armstrong. Summary of Green v. The Queen, 2019 TCC 74 under s. 118.4(1)(c.1).