14 November 2002 Ministerial Correspondence 2002-0168144 - DISABILITY TAX CREDIT

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues: The CCRA's position with respect to Tax Court Decisions

rendered under an informal procedure.

Position: Decisions are not precedent setting and therefore not considered binding

on the CCRA.

Reasons: The provisions under the Tax Court of Canada Act (Section 18.28).

November 14, 2002

XXXXXXXXXX

Dear Colleague:

Thank you for your letter of October 2, 2002, with which you enclosed a copy of a letter from your constituent, XXXXXXXXXX, concerning the policy of the Canada Customs and Revenue Agency (CCRA) as it relates to the application of decisions of the Tax Court of Canada.

An appeal to the Tax Court of Canada may be heard and decided in accordance with one of two procedures: the general procedure and the informal procedure. The general procedure appeal follows formal rules of pleading and evidence and a judgement rendered by the Tax Court may be treated as a precedent.

By contrast, the informal procedure applies when the amount of tax in issue is small and is intended to resolve appeals as quickly and casually as possible. Under this procedure, the Tax Court is not bound by legal or technical rules of evidence and is required to deal with appeals as expeditiously as the circumstances and considerations of fairness permit. With respect to judgements rendered, the Tax Court of Canada Act provides that such judgements shall not be treated as precedents for any other case. Thus, these judgements are intended to apply strictly to the taxpayer bringing the appeal.

The case, Steele v. The Queen, referred to in your constituent's letter involved a judgement rendered under the informal procedure. Therefore, in our response to XXXXXXXXXX's client, the CCRA stated that the judgement would not be used as a precedent. In addition, the CCRA advised his client that the Form T2201, Disability Tax Credit Certificate, submitted in support of the claim for the disability tax credit, did not indicate that the client had a severe and prolonged mental or physical impairment the effects of which markedly restricted his or her ability to perform the basic activities of daily living, as required by the Income Tax Act.

I assure you that the CCRA makes all attempts to apply the law properly and uniformly. Should your constituent's client submit a Form T2201 containing all the information required to his local Tax Services Office, due consideration will be given to whether he or she is entitled to the disability tax credit.

I trust that the above information will assist you in responding to XXXXXXXXXX.

						Sincerely,

						Elinor Caplan

c.c.: Minister's Office
Political Assistant

B. Naufal
(613) 957-2744