Applying for Disability Tax Credits Could Cost Thousands — Just to Access Money Meant to Help

When Kathy Meyers learned she could claim thousands of dollars through Canada’s Disability Tax Credit (DTC), she was hopeful. The Port Coquitlam mother, who lives with severe Crohn’s disease and is on permanent disability, hoped the refund could ease her family’s financial stress.

But the path to that refund came at a steep price.

After a friend recommended True North Disability Services — a for-profit DTC consulting company — Meyers hired them to handle the applications for herself and her 14-year-old son. While her own application is still pending more than a year later, her son’s was approved — and the family was billed over $7,600, including GST.

“It’s been very stressful and financially very hard,” Meyers said. “They’re taking such a big chunk of the rebate — it feels abusive.”

DTC Consultants Charge up to 40%

The CRA estimates DTC applications will triple in the next five years, driven by the launch of the Canada Disability Benefit — a new monthly $200 payment requiring DTC eligibility.

That’s expected to fuel more demand for companies like True North, which charge 15% to 40% in contingency fees for successful DTC claims. According to Meyers, the fees come on top of additional charges, including $150 payments to her doctor per form.

“That money was supposed to help with bills,” she said. “Instead, we’re paying it right back out.”

While some former clients say these services were worth it — especially when overwhelmed by medical issues — others, like Leanne King, say they weren’t aware of free or low-cost options until after they had already paid.

“I wouldn’t have spent $3,850 if I’d known,” said King, who has diabetes and kidney disease. “It feels a little predatory.”

CRA Reform Blocked — for Now

In 2021, the federal government tried to cap fees at $100 to protect low-income applicants — but True North and co-founder Shane Nercessian successfully challenged the regulation in court. A trial is set for July 2026.

Court documents show True North argued that a $100 cap would make their services economically unviable — saying their work goes beyond paperwork to include 10-year tax assessments, medical advocacy, and CRA appeals.

Nercessian declined CBC interview requests but said in a statement that True North has helped expose systemic problems and contributed to public policy changes.

Doctors and Advocates Call for Simpler System

Medical professionals say the DTC application process — a 16-page form requiring physician certification — is too complex and time-consuming.

“It causes moral distress for doctors,” said Dr. Charlene Lui, president of Doctors of B.C. “The forms are long, not integrated into our systems, and take time from already overburdened physicians.”

The Canadian Medical Association and disability advocates are urging the government to streamline the system — including accepting a doctor’s note or integrating forms into electronic health records.

The CRA says it digitized the process in 2023, but further reform would require legislative changes.

Government Support — but Patchy

The federal government has committed $23.5 million to six non-profits to help people access the DTC for free and $243 million to eliminate out-of-pocket doctor fees.

But critics say more is needed to fix the core issue: a disjointed, paperwork-heavy system that forces people with disabilities to navigate bureaucratic hurdles just to access support.

“This system was supposed to reduce poverty,” said former minister Carla Qualtrough. “Instead, people are being charged thousands for money meant to help them survive.”

Qualtrough says Canada needs a one-step, unified system that automatically links eligible applicants to all federal and provincial benefits.

“We’re asking tax administrators to be gatekeepers for vital social supports. It’s not the right fit.”

Bottom Line:
As more Canadians become eligible for disability benefits, the complexity of the application process risks turning help into hardship — unless reforms make access truly fair, affordable, and automatic.