Tax Exemption for Virtual Support Services

AI summary

Petitioners ask the Minister of Finance to revise tax‑exemption rules so that support services and programs provided virtually to Canadians with disabilities are treated like in‑person services and to establish a standard allowing organizations to offer tax‑free virtual supports. The petitioners state that since the COVID‑19 pandemic live virtual support services have emerged and are, in their view, more affordable, flexible and accessible than comparable in‑person services, and that the current tax code’s exemption for "services rendered principally at the location of an establishment" does not cover similar online services and therefore creates financial burdens for disabled Canadians.

AI summaries describe petitioners’ requests and claims. Consult the official record for the full text.

Official petition

Petition to the Minister of Finance We, the undersigned Citizens of Canada, draw the attention of the Minister of Finance to the following: WHEREAS: Since the COVID-19 pandemic, there has been an emergence of live virtual support services and programs available to Canadians with disabilities; These online services are financially more affordable, flexible, and accessible to Canadians with disabilities compared to similar in-person services and programs; Disabled Canadians benefit from these virtual programs that connect them with peers, foster meaningful connections, and access various opportunities for learning, skill development, inclusion and independence; Despite this positive shift to accessible options, the Canadian Tax Code has not yet caught up with these new online support services for disabled Canadians; The current tax code provides tax exemptions to Canadians with disabilities for "services rendered principally at the location of an establishment" but not for similar services provided online; Consequently, disabled Canadians who access virtual support services and programs are still subjected to taxes on these essential and life enhancing services; and As a result, disabled Canadians accessing vital virtual support services and programs face increased financial burdens that could be alleviated if these online supports were recognized and exempted from taxation. THEREFORE, your petitioners call upon the Minister of Finance to: 1. Revise the existing criteria for tax exemptions on support services for disabled Canadians to encompass support services and programs provided virtually; and 2. Establish a new standard for tax exemptions that would enable organizations to offer tax-free virtual support services and programs to disabled Canadians, facilitating increased accessibility and support for these Canadians in their daily lives.

Government response

No government response is available yet.