As Canada prepares to roll out the new $200 monthly Canada Disability Benefit starting in July, concerns are growing over the high costs families incur to access the Disability Tax Credit (DTC) — the essential first step toward receiving the benefit. Many Canadians are paying thousands in third-party service fees, prompting scrutiny over equity, accessibility, and the role of advocacy firms.
Mounting Costs: Families Paying Thousands for DTC Access
In Port Coquitlam, B.C., Kathy Meyers turned to True North Disability Services to assist with DTC applications for herself and her 14-year-old son. While her son’s application was approved, Meyers was stunned to receive a bill of over $7,600 — equivalent to 20% of their CRA refund plus GST.
Living with severe Crohn’s disease and on permanent disability, Meyers later discovered free alternatives and regretted using a third-party service. “It’s been financially devastating,” she said, accusing the firm of exploiting vulnerable people by charging steep fees for an essential benefit.
Rising Demand for the DTC Sparks More Applications
The Canada Revenue Agency (CRA) anticipates that DTC applications will triple over the next five to six years. This surge is largely due to the DTC becoming a mandatory prerequisite for accessing the new Canada Disability Benefit.
Despite the growing demand, many advocacy firms continue to charge contingency fees between 15% and 40%, according to CRA data from 2018. Though non-profit and flat-fee options exist, families often still choose companies like True North for assistance.
Debate Over High Fees and Legal Battles
True North and similar firms defend their pricing models, claiming the fees cover administrative support and direct coordination with CRA and healthcare providers. However, the company’s fee structure has come under legal scrutiny.
In 2021, the federal government sought to cap DTC service fees at $100, but a BC Supreme Court injunction — initiated by True North and co-founder Shane Nercessian — blocked the proposed regulation. The court ruled that such a cap would make offering these services economically unviable. A trial is scheduled for July 2026.
Nercessian told CBC that True North is a member of the Disability Tax Fairness Alliance and played a key role in advocating for diabetics who were denied DTC access. He argued that the $100 cap would only cover basic data entry and not essential services like eligibility evaluations or doctor coordination.
Mixed Reactions from Clients
While some clients have praised True North, others have criticized the fees. Kathy Johnson from Blue River, B.C., paid $1,900 out of a $9,000 refund and still recommends the firm despite not knowing about free options.
On the other hand, Leanne King, living with diabetes and polycystic kidney disease, spent $3,850 with True North. “It’s a lot of money,” she admitted. “It feels a bit predatory because they’re targeting people who are already struggling.”
Meyers added that her doctor charged two separate $150 fees for completing the DTC paperwork — a 16-page form — for her and her son. Her husband, who is also disabled, opted to apply without using third-party services after his doctor declined to cooperate with a DTC firm.
CRA and Medical Community Push for Reforms
To improve accessibility, the CRA digitized the DTC application in 2023. However, calls for further simplification — such as using doctor’s notes or linking to electronic medical records — have been met with legislative constraints.
The CRA has stated that it is working toward implementing the Disability Advisory Committee’s recommendations to ensure that the DTC is more accessible and less burdensome.
Healthcare professionals, including Doctors of BC president Charlene Lui, say the forms are time-consuming and emotionally taxing. Lui and others, including the Canadian Medical Association, recommend transitioning to shorter, integrated digital forms.
Government Investment in Free DTC Support
To combat financial barriers, the Ministry of Jobs and Families has allocated:
- $23.5 million to six non-profit organizations to help applicants access the DTC for free
- $243 million to cover out-of-pocket costs for doctors completing DTC forms
The ministry added that the federal government is committed to reforming the DTC application process to ensure that no Canadian is excluded due to cost.
Call for Systemic Reform
Former MP Carla Qualtrough, who previously served as Minister of Employment and Disability Inclusion, said the situation is “heartbreaking.” She stressed that the DTC is meant to fight poverty, yet many recipients are paying thousands just to access it.
Qualtrough emphasized the need for a centralized, inclusive disability support system, stating:
“We’re asking tax analysts to gatekeep access to social benefits, and that just doesn’t make sense.”
Conclusion
The growing controversy around high fees for Disability Tax Credit services raises critical questions about fairness, access, and reform. As the Canada Disability Benefit launches, more families will seek DTC approval — potentially encountering expensive third-party services or struggling through a complex application process. The federal government’s investments in free support and legislative reform aim to ease the burden, but advocates and experts agree: a more streamlined, equitable system is urgently needed.
Frequently Asked Questions
1. What is the Disability Tax Credit (DTC), and why is it important?
The DTC is a non-refundable tax credit in Canada that helps reduce the income tax burden for individuals with disabilities. It is now essential for accessing the new $200 monthly Canada Disability Benefit.
2. Why are families paying high fees for DTC applications?
Many families turn to third-party services, some of which charge 15% to 40% of refunds, for help navigating the complex application process.
3. Are there free or lower-cost alternatives for DTC applications?
Yes. The federal government has funded six non-profits to offer free DTC assistance and has allocated funds to cover doctor fees for completing the forms.
4. What reforms are being proposed for the DTC process?
Suggestions include simplifying the form, integrating it with electronic health records, and limiting third-party fees. A trial on fee regulations is scheduled for July 2026.
5. Can I apply for the DTC without using a third-party company?
Absolutely. Canadians can apply directly through the CRA or seek free support from non-profits funded by the government to avoid paying high fees.