September 23, 2025
Historically, applying for the DTC in the Mental Functions category has been the most difficult of all categories, with one of the highest rejection rates. In 2019, 14% of all claims by people living with a severe and prolonged mental impairment were rejected. That year, the Tax Cout of Canada ruled in favour of two cases that were wrongly denied the DTC by the Canada Revenue Agency. It is impossible to understand how these cases were routinely rejected when the information provided by both applicants' doctors clearly indicated that their patients were markedly restricted in their mental functions, all or substantially all of the time.
Jungen v. The Queen
Elaine Jungen’s 15-year-old son (JA) had been diagnosed with “attention deficit hyperactivity disorder.” Even with medication to treat severe ADHD symptoms, her son was, “argumentative, aggressive and angry . . . and needs his mother’s 100% assistance to help him adapt to social cues and to learn to use correctly the right behaviour in social interactions, with his sibling and peers. In her Certificate, Dr. Kardal gave examples of the “marked restrictions” regarding JA’s conduct, as follows:
- requires reminders for showering, grooming, wearing deodorant;
- does not go to a store or out into the community alone;
- will not look at or speak to store clerks without support from his mother;
- needs reminders for daily routines and activities;
- does not interact appropriately with others;
- says things that are hurtful or disrespectful and is often argumentative and oppositional;
- deliberately annoys other people;
- these all have a negative impact on his ability to interact with peers and adults;
- [d]oes not talk to me [i.e., Dr. Kardal] during visits at my office even though he has known me for many years;
- requires a specialized educational program;
- needs support from an adult to follow multi-step instructions;
- has a weak memory and poor concept of time;
- lacks the necessary awareness and insight to solve problems;
- [he] is functioning well below most teenagers his age who are independent in most of these areas.
Judge Bruce Russell noted that the “adaptive functioning” statutory reference to ability regarding social interactions was particularly relevant. The evidence clearly established that JA was seriously lacking in ability to engage in social interactions and therefore he qualified to the DTC.
Green v. The Queen
According to the court record, Amber Green is in her early thirties and suffers from severe social anxiety disorder, severe panic disorder with agoraphobia, and chronic and generalized moderate to severe generalized anxiety disorder, all as diagnosed by a psychiatrist. She also has a persistent depressive disorder as diagnosed by a second psychiatrist.
Ms. Green prepares her own meals, can dress and bathe herself, and usually is able to shop at her local Sobeys for groceries. However, she otherwise avoids all retail stores unless she is accompanied by someone. Her mother usually does her banking and tax filings, makes her medical and other appointments, and takes care of all third-party communications for Ms. Green. Ms. Green will not attend a medical appointment without her mother. Once at the appointment, she sometimes will go into the medical practitioner’s office on her own, but she was clear that, if she had to go by herself, no matter how sick she was, she would not go to the appointment.
Ms. Green's mother testified that her daughter had difficulty coping socially, participating in social and recreational activities, or working. She would take the bus on her own, provided she was familiar with the route, but she did not like to do so, found it stressful, and avoided it if she could.
Judge Siobhan Monaghan recognized that Ms. Green’s social anxiety, depression and phobias had a significant effect on her ability to function in the way society expects adults to function, stating: “She is not able to go about her daily life as most would. She is easily overwhelmed, avoids social contact, and prefers to stay at home by herself rather than leave her apartment. She is heavily dependent on her mother and her friends to help her make what most would consider mundane, easy decisions and to complete what most would consider routine tasks… I am satisfied that Ms. Green’s mental illness affects and permeates her life to a significant degree all of the time and therefore does affect her problem‑solving, goal-setting and judgment abilities as they relate to everyday life. How can it not?”
TAGS - DTC, CRA
