Cap on Disability Tax Credit Promoter Fees

Summary#

The Disability Tax Credit Promoters Restrictions Regulations set a flat cap on what third parties (promoters) can charge to help people apply for the Disability Tax Credit (DTC) or to request related tax adjustments. The main practical effect is a maximum fee of $100 for certain DTC requests, with limited built‑in inflation updates starting in 2025.

What it does#

• Sets the maximum fee a promoter can accept or charge at:
  • $100 for a request that asks the Canada Revenue Agency to decide DTC eligibility, and
  • $100 per taxation year for requests tied to DTC‑related deductions or tax overpayments.
• If several DTC requests are made for the same claimant in a single taxation year, the total fee a promoter may accept or charge for that year cannot exceed $100.
• Allows the fee to be adjusted for inflation starting in 2025, and then every five years. Adjustments are applied on December 1 of an applicable year only if the increase would be at least $5.
• The rules do not limit fees for parts of a tax return that are unrelated to the DTC. They also do not apply to services for appealing CRA decisions to the Tax Court.
• The regulations come into force when the Disability Tax Credit Promoters Restrictions Act comes into force (scheduled for November 15, 2021), or on the day the regulations are registered if that is later.

Who's affected#

• People with disabilities and their supporting family members who apply for the Disability Tax Credit. These are the claimants most likely to see lower fees or to keep more of any tax refund.
• Promoters — a broad group that can include tax preparers, accountants, financial services firms and lawyers — who charge for helping with DTC requests.
• The Canada Revenue Agency (CRA), which will collect more information on promoter involvement and enforce the limits.
• Small businesses that currently earn money from DTC services. The government estimates some will earn less and a few may close; the scale of closures is unclear.

Why it matters#

• It aims to stop high contingency fees (often 15%–40% of a refund) that left many claimants paying large sums for help with relatively small paperwork tasks.
• The CRA estimates promoters collected between $9.5 million and $25.4 million in fees in 2018 for DTC services. After the cap, promoters’ revenues could fall by an estimated $5.1 million to $22.0 million per year — money that would instead stay with claimants (according to the CRA’s analysis).
• The cap should make DTC help more affordable for vulnerable people. But it may reduce the number of paid helpers available, since some small providers could stop offering the service.
• The CRA plans changes to forms (including the DTC form) and a new notification form for promoters who charged more than the cap. These steps are meant to help find and address non‑compliance.
• The regulations do not cover Quebec provincial DTC filings (Quebec uses a separate provincial process).