Local advocate wants to change the tax code to help Canadians with disabilities save money

A Waterloo-based advocate has launched a petition for tax exemptions on virtual support services for Canadians with disabilities. 

Abigail Murphy says virtual services grew during the pandemic, and they continue into today are more affordable and accessible especially for people with a disability.

Unfortunately, Murphy explains it's only in-person services that are tax exempt, something she calls "outdated."

Murphy launched the petition last month asking Canada's Minister of Finance Chrystia Freeland to change the rules.

"The tax code is just simply outdated," Murphy told CBC News. "I would say that this is a very important change that has been a long time coming. It's been four years since COVID. These virtual services have been operating full time now for four years."

Murphy needs at least 500 signatures to bring the petition to Parliament.

Feds point to Canada Disability Benefit

A spokesperson for the federal government told CBC News in an email it "cannot speculate on any potential changes to the tax system."

"The federal government is focused on ensuring a fairer chance for all persons with disabilities. That is why it introduced in this year's budget the Canada Disability Benefit," the email continued. 

According to the government, the Canada Disability Benefit will lift about 25,000 adults out of poverty.

The Liberals passed the bill in June 2023, creating a new federal benefits program to lift people out of poverty by topping up provincial supports. Payments will begin rolling out in July 2025. The maximum benefit for low-income Canadians with disabilities will be $200 monthly.

Challenges of accessing services in-person

Mike O'dah Ziibing Ashkewe is a disability advocate based in Guelph. He is one of the hundreds of people who have signed Murphy's petition so far.

"Being taxed for a service that's delivered virtually is frankly kind of stupid," Ashkewe said.

"For example, I have a therapist appointment today that I'm doing virtually. And if it wasn't the fact that it was being done over the phone, if I had to go into an office, that's just more inconvenient for me. Plus I'd have to look at transportation. There's just a lot of hidden costs."

Murphy says there can be drastic differences in the cost of in-person services and virtual services.

"For only $65 a week, a person can attend a virtual program every day. That's compared to an average of $440 a week at an in-person day program," she said.

"When we put into perspective, $375 might not sound like a lot of money to someone who works full time and has a steady income and salary. But for people who receive ODSP (Ontario Disability Support Program) support, $375 is a lot of money," she said, adding there are many other expenses the extra money could potentially go toward.

"It can go a long way in terms of even just buying someone an iPad that they can use to communicate. It can buy someone a new wheel on their wheelchair or an upgrade in sensory toys that can go a really long way for this population. Every dollar really counts."

Ashkewe says updating updating the tax code is just one way to help give Canadians with disabilities a better life.

"The less we have to pay, then that's more money that we can help support ourselves. That's more money we can actively add into the economy. That's more money we can do to improve our lives. And we deserve happiness, safety and security just as much as as everybody else," Ashkewe said.

Next steps

The last day to sign the petition is Feb. 18.

At that point, if the petition has at least 500 signatures, Kitchener Centre MP Mike Morrice plans to present it to Parliament. The government then has 45 days to respond to the petition and give a sense of where they stand on the issue.

Morrice is hoping the process will help raise awareness.

"My sense is that most folks, including many in the governing party, might not even be aware that this is an issue," he said.

"It really seems to be like the tax code just hasn't caught up with the reality of services being provided online. And so with that, a petition on its own doesn't force a vote on the floor of the House of Commons. It doesn't require the government to act, but it does raise the profile of this issue."

He says Canadians with disabilities deserve better.

"I'm just disappointed that it seems like time and again when it comes to Canadians living with disabilities, there are just so many barriers," he said.

"In this case, it seems like such a reasonable change that Abigail is calling for. I'm really hopeful that they'll be hearing this particular call."