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Disability Tax Credit Sample Letters

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Below are letters that have been successfully used when dealing with the Canadian Revenue Agency at various levels of appeals for the Disability Tax Credit for those with Type 1 diabetes. Please note that these are simply guidelines to assist you in your own tax case. We are not lawyers or accountants. 

Notice of Objection


Name______________________________
Address_____________________________
Phone number_______________________
SIN number__________________________

Date_________________

Chief of Appeals
Tax Services Offices
Canada Revenue Agency
________________
________________

Dear Sir or Madam:

I, ______________, am filing a Notice of Objection in accordance to the guidelines provided by the Canada Revenue Agency (CRA) regarding the denial of my application for the Disability Tax Credit (DTC) for the __________ tax year(s).

I strongly disagree with the findings of CRA denying my claim for the DTC. I believe that my son/daughter ________ clearly meets the eligibility criteria as it is set out in the Income Tax Act and has been interpreted by the Courts .

___________’s impairment (Type 1 Insulin Dependent Diabetes Mellitus also known as juvenile diabetes) is such that his/her ability to perform any of the basic activities of daily living are markedly restricted, or would be markedly restricted but for insulin therapy that is required to be administered at least three times each week for a total duration averaging not less than 14 hours a week.

The Tax Court of Canada (Tammi v. Canada 2003 and Sullivan v. Canada 2004) has ruled that Life-Sustaining Therapy for children with Type 1 diabetes includes the ancillary activities such as glucose monitoring, the determination of the insulin dosage and the number of carbohydrates required in each meal as well as choosing the appropriate foods and weighing them in addition to the actual injection of the insulin.

I am attaching “A day in the life of ____________" providing detailed documentation of the number of hours of insulin therapy in any given day. Any deviation from _________’s daily regimen threatens his well-being and can cause death.

Furthermore, Dr._____________ has certified in the T2201 form that _________ meets the conditions for life-sustaining therapy since he/she requires more than 14 hours of therapy each week to sustain a vital function.

I am attaching a copy of a letter from Dr._________ providing additional medical information to substantiate the DTC claim.

I look forward to hearing from you.

Sincerely,

___________________________

Enc. Copy of T2201 form

Copy of the letter from CRA rejecting the DTC claim

Copy of letter from Dr. ___________

“A Day in the Life of _____________”
 

A Day in the Life of ___________  


Note:   All data from the glucose levels and injections must be recorded.______ must be observed during snack and meal times to ensure that everything is consumed.

Give detailed, time of day account of 24 hours in your life.


Notice of Appeal


Name________________
Address______________
Phone number________
SIN number___________

Date___________

Tax Court of Canada
200 Kent Street
Ottawa, ON
K1A 0M1

Dear Sir or Madam:

I, ______________, am appealing to the Tax Court of Canada using the Informal Procedure, regarding the denial of our application for the Disability Tax Credit (DTC) for the __________ tax year(s). I believe that my son/daughter _______ clearly meets the eligibility criteria as it is set out in the Income Tax Act and interpreted by the Tax Court of Canada .

Dr. ___________ has certified in the DTC Certificate, form T220, that _________’s impairment (Type 1 Insulin Dependent Diabetes Mellitus also known as juvenile diabetes) is such that his/her ability to perform any of the basic activities of daily living is markedly restricted, or would be markedly restricted but for insulin therapy that is required to be administered at least three times each week for a total duration averaging not less than 14 hours a week.

I strongly disagree with the findings of the __________ Tax Centre of the Canada Revenue Agency (CRA) denying the claim for the DTC. There is no medical or legislative basis for CRA’s narrow interpretation of “therapy” to limit it only to the actual time required for insulin injections.

The Tax Court of Canada (Tammi v. Canada 2003 and Sullivan v. Canada 2004) has ruled that Life Sustaining Therapy for children with Type 1 diabetes includes the ancillary activities such as glucose monitoring, the determination of the insulin dosage and the number of carbohydrates required in each meal as well as choosing the appropriate foods and weighing them in addition to the actual injection of the insulin. Any deviation from this strict regimen will compromise and markedly restrict __________’s ability to perform all of the basic activities of daily living and can cause death.

Furthermore, CRA has settled similar cases out of Court by providing Consent to Judgments for Marche v. The Queen 2004 and Borne-Williams V. the Queen 2004.

I am attaching “A day in the life of ____________ “ providing detailed documentation of the number of hours of insulin therapy on any given day.

I am attaching a copy of the T2201 form where Dr. _____________ has certified that _________ meets the conditions for Life Sustaining Therapy requiring more than 14 hours of therapy each week to sustain a vital function.

I am attaching a copy of a letter from Dr._________ providing additional medical information to substantiate the DTC claim.

I look forward to hearing from you.

Sincerely,

___________________________

Enc. Cheque for $100 to the Receiver General for Canada
Copy of letter from Dr. ___________

“A Day in the Life of _____________”

Copy of T2201 form

Copy of Notice of Confirmation by the Minister dated ___________


Medical Report


Dr. ____________________
Address________________
_______________________
Tel: ________________
Fax: _______________

Medical Report for _______________

Type 1 diabetes mellitus or insulin-dependent diabetes “IDDM” (sometimes called juvenile diabetes) is one of the most serious chronic diseases affecting young children and adolescents for which there is no cure. Prior to the discovery of insulin in 1922, the onset of the disease meant almost certain death for these children. Type 1 diabetes cannot be completely controlled; it can only be managed. The mortality rates for many children with Type 1 diabetes has improved significantly over the past decade reflecting better glycemic control as a result of frequent monitoring of blood glucose levels and the adherence to a strict regime of carbohydrate and protein intake in addition to multiple daily insulin injections.

1. ____________ was diagnosed with Type 1 diabetes mellitus in __________ .
2. ____________ requires life-sustaining therapy in the form of insulin therapy to sustain a vital function.
3. Insulin therapy is the only therapy that reduces the effects and the mortality rate associated with the disease.
4. Insulin therapy for ____________ consists of the following activities:
- lancing the finger to obtain a blood sample
- using the glucometer to test the glucose level in the blood
- determining the dosage of the insulin based on the blood glucose levels and trends that have been charted in a daily log
- preparing a syringe with long-lasting insulin
- injecting the insulin sub-cutaneously
- calculating the number of complex carbohydrates and proteins required for each meal
- ensuring that all of the prepared food is eaten
- preparing a syringe with fast-acting insulin using a predetermined insulin to carbohydrate ratio
- injecting the fast-acting insulin sub-cutaneously.
5. If ____________ does not receive insulin therapy, he/she will quickly become markedly restricted in all of the basic activities of daily living, namely:
(i) perceiving, thinking and remembering,
(ii) feeding and dressing oneself,
(iii) speaking,
(iv) hearing,
(v) eliminating (bowel or bladder functions),
(vi) seeing, and
(vii) walking.
6. Without multiple insulin injections along with the strict monitoring of ________’s blood sugars and carbohydrate intake and the ongoing assessment of trends and adjustments in his insulin dosages, ____________ will suffer from hypoglycemia (low blood sugar levels) or hyperglycemia (high blood sugar levels).
7. If ____________ is hypoglycemic with too much insulin in his system, the body does not have the energy to function properly, which particularly affects the brain.
8. Without intervention and/or treatment for hypoglycemia, _________ can experience epileptic seizures or laps into a coma.
9. If a hypoglycemic coma is left untreated, it will cause brain death.
10. If ____________ is hyperglycemic with too little, or no insulin, in his system, the body tries to maintain its function by the use of an alternative fuel source – fat. The breakdown products of fat metabolism are toxic to the body and cause diabetic ketoacidosis.
11. Diabetic ketoacidosis is harmful to all organs, but particularly to the brain. It constitutes a medical emergency.
12. In order to totally prevent or significantly reduce the frequency of hypoglycemic and hyperglycemic episodes, ____________ is in absolute need of insulin therapy to help provide a steady control of blood sugar levels.
13. As a consequence, ____________ requires constant monitoring by a responsible adult, who has been trained in diabetes management, 24 hours a day, seven days a week. He needs to have his blood glucose levels measured _______times a day and multiple daily insulin injections.
14. In my professional opinion, insulin therapy constitutes life-sustaining therapy as referenced in Part B of the Disability Tax Credit (DTC) Certificate, Form 2201.

Dr. ______________________ 
Date___________________


Appeal to Tax Court made by Parent of an Insulin Pumper

 

TAX COURT OF CANADA

BETWEEN:

                                                          ____________APPELLANT

                                                                      - and -

                                                  HER MAJESTY THE QUEEN                                                      

RESPONDENT

            NOTICE OF APPEAL

                                                   PART I - INTRODUCTION  

1.                  XXXXXX (hereinafter the "Appellant"), is an individual residing at or near __________, ___________, and whose mailing address is ___________

2.                  The Appellant appeals to the Tax Court of Canada in respect of a reassessment by the Minister of National Revenue (the "Minister") of the Appellant's 2001 taxation year (the "Subject Taxation Year") under the Income Tax Act, R.S.C. 1985 (5th Supp.) c. 1, as amended (the "Act") as set forth in a Notice of Assessment dated November 4, 2002 (the "Assessment").

3.                  The Appellant elects to have the Informal Procedure, provided by sections 18.1 to 18.28 of the Tax Court of Canada Act, applied to this appeal.

                                                            PART II - FACTS

4.                  The Appellant states that the following sets forth the material facts relied upon for the purposes of the present appeal:

(a)                   The Appellant is an individual, resident in _____________ 

(b)                   The Appellant is the father of _________, whose date of birth is dd/m/year;

(c)                   ___________ was diagnosed with Type I (sometimes called Juvenile) Diabetes in 1992 and she/he has been insulin-dependant since that time.  

(d)                   Type1 Diabetes is a disease and there is currently no cure other than transplantation, a choice not offered to children or most adults. Insulin injection is the only therapy that reduces the effects and the mortality rate associated with the disease;  

(e)                   As with all types of diabetes, the metabolism of carbohydrates (including sugars such as glucose), proteins and fats is altered;  

(f)                     In Type I Diabetes, the beta cells no longer produce insulin.  Insulin is required to allow glucose to enter blood cells to be used as fuel;   

(g)                   Without insulin and monitoring of _________ blood sugars and the assessment of trends and adjustments in her/his insulin dosages, ______ will suffer hypoglycemia caused by too much insulin in her system and hyperglycemia caused by too little insulin in her system;

(h)                   Without adequate insulin, glucose builds up in the bloodstream instead of going into the cells causing hyperglycemia;

(i)                     When suffering from hyperglycemia the body is unable to use this glucose for energy, despite high levels in the bloodstream, leading to increased hunger;  

(j)                     With hyperglycemia, the high levels of glucose in the diabetic's blood causes the diabetic to urinate more which, in turn, causes excessive thirst;  

(k)                   When __________ has hyperglycemia, it means she/he does not have enough insulin in her/his body and this can result in her/him being very thirsty, tired, have blurred vision, frequent urination and nausea;  

(l)                     Hyperglycemia increases the risk for all types of strokes  

(m)                 Without intervention and treatment for hyperglycemia caused by too little, or no insulin, _________ can develop Diabetic ketoacidosis, a life-threatening complication of hyperglycemia;

(n)                   Diabetic ketoacidosis, if untreated, is fatal;  

(o)                   With too much insulin in her/his body, _________ blood glucose gets too low causing her/him to suffer from hypoglycemia.  

(p)                   When suffering from hypoglycemia, low levels of glucose in the body caused by too much insulin, the body does not have the energy required to function properly;   

(q)                   When _________ suffers from mild – moderate hypoglycemia, or low blood sugar values, she/he feels weak, confused, irritable, hungry and tired;  

(r)                    Without intervention and/or treatment for hypoglycemia ___________ can develop severe hypoglycemia;   

(s)                    Severe hypoglycemia can cause unconsciousness, coma or convulsions;  

(t)                     In order to markedly reduce the frequency of hypoglycemic and hyperglycemic episodes _____ has suffered since developing Type 1 diabetes at the age of ___  _______ began insulin pump therapy in 1999.  This therapy involves the use of an insulin infusion pump (“Infusion Pump Therapy” or “IPT”).  She/He wears the insulin infusion pump seven days a week for more than 23 hours a day;

(u)                   Insulin Pump therapy uses only rapid acting insulin;  

(v)                   Insulin Pump Therapy does not use cloudy insulin (NPH) which has drastically reduced the frequency of low to moderate hypoglycemic episodes that _________ suffered and to this date has prevented the onset of severe hypoglycemic episodes  

(w)                 ________ has been using Insulin Pump Therapy since March of 1999;  

(x)                   The use of Insulin Pump Therapy has alleviated _______ impairment caused by the frequency of hypoglycemic and hyperglycemic events while he/she was on multiple daily injection of multiple insulins.  While undergoing insulin pump therapy _______ is not markedly restricted in her/his ability to perform basic activities of daily living;  

(y)                   The use of the insulin infusion pump, accompanied by frequent monitoring of blood glucose values provides the data required to read trends and make proper adjustments in insulin requirements;   

(z)                    The use of Insulin Pump Therapy has given ___________ the ability to maintain healthier blood glucose levels leading to better physical health;  

(aa)                The use of Insulin Pump therapy has given ___________ more control over her disease alleviating the sense of hopelessness and helplessness;  

(bb)               The insulin infusion pump (Insulin Pump Therapy) is attached to _________ body by a length of tubing through which the insulin is delivered from the pump and into an infusion set;  

(cc)                An infusion set consists of the tubing which runs from the reservoir of insulin in the insulin pump, an introducer needle which inserts a cannula under the skin and tape to keep it in place (much like an IV);  

(dd)               A cannula is flexible Teflon tubing, approx 6mm long, which lies under the skin and disperses the insulin which is ‘pumped’ through the tubing which runs from the insulin reservoir contained in the insulin infusion pump.  It has to be replaced and moved every 3-4 days;  

(ee)                The insulin infusion pump is a medical device which requires the user to enter pertinent information about the users needs;  This requires that the insulin infusion pump is regulated and set each day;

(ff)                   The insulin infusion pump requires maintenance and is battery operated;  

(gg)                Requires knowledge of its technical aspects and supplies which are necessary to use it properly;  

(hh)                Requires knowledge and attention to the insulin requirements of the person with diabetes, which can change daily according to age, growth, illness, activity, stress, and other physiological and environmental effects.  

(ii)                    Insulin Pump Therapy is used to deliver insulin, subcutaneously, for three different reasons.  Basal or background insulin, bolus insulin to cover carbohydrates which are ingested and correction doses to reduce high levels of glucose in the blood (hyperglycemia);

(jj)                   Insulin Pump Therapy provides a system where ________receives minute  doses of insulin automatically throughout the day to mimic what a healthy pancreas would provide if she were not diabetic.  This is called basal insulin and her basal requirements can change depending on growth, illness, activity, stress, and other physiological and environmental factors;  

(kk)               The amount of basal insulin required for _________ background insulin needs over a 24 hour period is manually entered into the insulin infusion pump and unless it is manually changed, will be delivered automatically on a continual 24 hour basis.   

(ll)                    Presently ________ automatically receives minute doses of basal insulin approximately every 4 minutes resulting in approximately 360 doses of basal insulin over a 24 hour period;  

(mm)            Insulin Pump Therapy provides a system where ________ can receive insulin for carbohydrates she consumes during the day.  This is called bolus insulin.  Each time _________ ingests carbohydrates she/he must manually enter, into the insulin pump, the amount of insulin the insulin pump must give her to convert the carbohydrates to glucose which is used as fuel by her blood cells.  The requirements for each dose of bolus insulin varies depending on the amount of carbohydrates, the time of day, type of food, illness, activity, stress and other physiological and environmental factors;  

(nn)                Presently ________ receives, on the average, 10 bolus doses of insulin a day to convert carbohydrates to fuel each time she/he eats and drinks;

(oo)               Infusion Pump Therapy provides a system whereby ________ can correct a high blood glucose reading by giving her/himself a correction dose.  The amount of insulin required for a correction dose is arrived at by factoring in the glucose level and _______ insulin sensitivity factor which is determined by her/his diabetes healthcare team..  This amount is then manually entered into her insulin pump for delivery.  

(pp)               Presently, on average,  ________requires 0-3 correction doses a day to maintain tight glucose control;  

(qq)               Form T2201E(01) was filled out and certified by Dr. _____________ on ___________;  

(rr)                  Dr. __________ certified that the use of insulin pump therapy was life-sustaining therapy;

(ss)                 For the Subject Taxation Year the Appellant claimed the Disability Tax Credit with respect to ____________ impairment;  

(tt)                   By Notice of Assessment dated ______________, the Minister disallowed the Appellant's Disability Tax Credit claim;

(uu)                On or about ___________________, the Appellant duly filed a Notice of Objection with respect to the subject taxation year within the time prescribed by subsection 165(1) of the Income Tax Act;  

(vv)                By way of letter dated ____________, the Minister issued a Notice of Confirmation with respect to the disallowance of the Appellant's claim for the Disability Tax Credit in respect to ________, his dependant;  

(ww)            The Appellant appeals to the Tax Court in response to the Minister's Notice of Confirmation and the Notice of Assessment dated ____________;  

(xx)                The Appellant filed his ______ Tax Return and did not claim the Disability Tax Credit in respect to ________ disability as he was advised by representatives of the Minister on the basis that the claim had been disallowed for the subject taxation year.

                                                          PART III - ISSUES  

5.                  The Minister erred in disallowing the Disability Tax Credit claimed with respect to the Appellant’s dependant’s impairment for the Subject Taxation Year.

                                         PART IV - STATUTORY PROVISIONS

6.                  The Appellant relies upon the following statutory provisions:

(a)                   Subsection 118.3 and, more specifically, 118.3(1)(a.1) of the Act; and  

(b)                   Such other statutory provisions as the Appellant may advise.  

PART V - GROUNDS FOR APPEAL  

7.                  The Appellant intends to rely upon the following reasons for the purposes of the present appeal:  

(a)                   The Appellant submits that the claim for the Disability Tax Credit with respect to his dependant's impairment is correct;  

(b)                   The Appellant claims under provision of the Act in force for the year 2000 and subsequent on the basis that, in the absence of insulin therapy, his daughter's basic activities of daily living would be markedly restricted;  In fact, his daughter would die;  

(c)                   That the use of Insulin Pump Therapy is therapy within the meaning of the Act;

d)                   That Insulin Pump Therapy is essential for sustaining vital functions of _________.  Namely, the therapy when used properly, drastically reduces her chances of  severe hypoglycemia  and diabetic ketoacidosis;

(e)                   Insulin Pump Therapy requires that the mechanism be physically attached to ______ for almost 24 hours a day, seven days a week and that, while attached to _______, it automatically administers .1 units of basal (background) insulin every 4 minutes equaling  ± 360 injections of insulin continuously over each 24 hour  period.  

(f)                     Insulin Pump Therapy requires that the mechanism be physically attached to _______ when she/he delivers a bolus dose of insulin to cover any carbohydrates she ingests during the day.  This amount of insulin required is manually entered into the pump by pushing the buttons.  The pump then delivers the required insulin over a period of time  

(g)                   Insulin Pump Therapy requires that the mechanism be physically attached to ______ when she requires a correction bolus of insulin in order to lower blood glucose levels when they are out of acceptable range.  

(h)                   The use of Insulin Pump Therapy cannot reasonably be expected to be of significant benefit to a person without Type I or Type II Diabetes; and  

(i)                     Such other grounds as the Appellant may advise and this Honourable Court may allow.

                                                 PART VI - RELIEF SOUGHT

8.                  The Appellant seeks the following relief from this Honourable Court:  

(a)                   that the Notice of Assessment for the Subject Taxation Year be referred back to the Minister for further reassessment on the basis that:  

A.             The Appellant is entitled to claim the Disability Tax Credit pursuant to subsection 118.3 of the Act with respect to the Appellant's dependant, _________; and  

B.              Such further and other relief as this Honourable Court may allow, including the costs of the Appeal.  

9.                  The Appellant requests that this appeal be heard in ___________

 

 

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