Families pay thousands in fees for CRA credit while free help remains largely unknown, CBC reports
Families are paying thousands of dollars in fees to access the Disability Tax Credit (DTC) — the gateway to the new $200 monthly Canada Disability Benefit set to begin in July — raising concerns about equity, financial strain, and the role of third-party companies in disability support.
According to CBC, Kathy Meyers of Port Coquitlam, BC, hired True North Disability Services to manage the DTC application for herself and her 14-year-old son.
The application for her son succeeded, but the family was billed more than $7,600 — 20 percent of the refund received from the Canada Revenue Agency (CRA), plus GST.
Meyers, who lives with severe Crohn’s disease and is on permanent disability, said she regrets turning to a DTC company and only later learned about free alternatives.
“It’s been very stressful and financially it’s been very hard,” said Meyers. “I think they’re abusing the people that are in need of obtaining this disability tax credit because they’re taking such a big chunk of the rebate.”
The CRA estimates DTC applications will triple in the next five to six years, driven by the credit’s status as a prerequisite for the Canada Disability Benefit.
While some advocacy companies charge contingency fees between 15 and 40 percent — according to 2018 CRA data — lower-cost options exist, including non-profits and flat-rate services.
Despite this, families continue to turn to firms like True North.
DTC companies argue their success-based fees fund administrative support and advocacy services, including liaising with the CRA and health-care providers.
True North’s fees remain under legal scrutiny. The federal government attempted to cap such fees at $100, but a 2021 BC Supreme Court injunction — following a challenge by True North and co-founder Shane Nercessian — blocked the regulation.
A trial is scheduled for July 2026.
In an email to CBC, Nercessian said True North is part of the Disability Tax Fairness Alliance and had a “pivotal role” in highlighting issues related to insulin-dependent diabetics being denied the DTC.
The 2021 injunction ruling referenced Nercessian’s position that the $100 cap would only allow basic data entry and not cover eligibility work, advocacy, or coordination with health professionals.
The ruling concluded that such a cap would make it “no longer economical to provide many DTC services.”
Some clients expressed support for True North’s role. Kathy Johnson of Blue River, BC, said she paid about $1,900 of a $9,000 refund to True North and would recommend them to others, despite being unaware of free help at the time.
“Really, I do have no regrets,” she said.
Others said they would have chosen differently.
Leanne King, who has diabetes and polycystic kidney disease, said she spent $3,850 with True North.
“I just wasn’t capable at the time of managing all that they did,” said King. “I do think it’s a lot [of money], and I do think it’s a little bit predatory, because they’re dealing with people that are sick.”
Meyers noted that, beyond the DTC company’s charges, she still owes two $150 fees to her doctor, who filled out nearly all of the 16-page form for her and her son.
Her husband, who is also disabled, is filing independently after his physician refused to work with a third-party firm.
According to the CRA, it digitised the DTC application process in 2023 in response to concerns raised by the medical community.
However, when asked whether it would simplify further — for instance, by accepting a doctor’s note or integrating with patient records — the CRA said it is limited by legislation.
“The CRA continues its efforts to make the DTC more accessible, aligning with the [Disability Advisory Committee’s] recommendations to ensure that individuals with disabilities can access the credit without financial burden,” the agency said.
Medical professionals have also voiced concerns about the current process.
Charlene Lui, president of Doctors of BC, said the forms are time-consuming and cause “significant moral distress,” pulling doctors away from patients. Lui suggested shorter, electronic forms integrated into existing health records.
The Canadian Medical Association, Doctors of BC, and disability advocates have all called for the DTC application to be streamlined to reduce the burden on both patients and physicians.
The Ministry of Jobs and Families said Canada has allocated $23.5m to six disability non-profits to provide free access to the DTC and $243m to eliminate out-of-pocket fees for doctors completing the forms.
“The Government of Canada has committed to further reviewing and reforming the process to apply for the Disability Tax Credit,” the ministry said.
Former MP Carla Qualtrough, who previously served as minister of employment, workforce development and disability inclusion, said hearing about what families like Meyers’s face is “heartbreaking.”
“It feels like people are being taken advantage of,” said Qualtrough. She added that it was frustrating because the purpose of the benefits is to reduce poverty and help people pay for essential needs, yet recipients are “being charged thousands and thousands of dollars.”
Qualtrough said the deeper issue is the lack of a consistent and unified disability support system in Canada.
“We’re asking tax analysts to decide and serve as the gatekeepers for these really important social benefits, it’s just not the right fit,” she said.
