John Manley, Deputy Prime Minister and Minister of Finance, announced today proposed amendments to the Income Tax Act that will clarify eligibility for the disability tax credit.

Two proposed amendments respond to a recent court decision and will ensure that eligibility for the disability tax credit is consistent with the policy intent to target the credit to people who are severely restricted in their ability to perform the basic activities of daily living.

The first amendment ensures that individuals would not be eligible for the disability tax credit merely on the basis of a dietary restriction that results in an extraordinary amount of time being spent on choosing, shopping for, preparing or cooking food. Specifically, it proposes that the expression “feeding oneself” be defined for tax credit purposes to mean the act of putting food in the mouth or swallowing that food.

The second amendment, similarly, will define the expression “dressing oneself” for tax credit purposes to mean the act of putting on and removing one’s clothes.

A third amendment corrects a technical anomaly and ensures that individuals severely restricted either in the activity of feeding oneself or dressing oneself will continue to qualify for the tax credit.

The proposed changes will be effective for the 2002 and subsequent taxation years. The credit reduces an individual’s federal income tax by up to almost $1,000 per year.