Waterloo advocate's petition to make virtual support services tax exempt 'back at square one'

A Waterloo-based advocate has launched a petition for the second time aimed at cutting taxes on virtual support services for people with disabilities.

Last November, Abigail Murphy started a petition asking Canada's minister of finance to change the rules, but when an election was called earlier this year, the petition was automatically dissolved.

"It's gaining traction and people are signing it, which is awesome. But we're now back at square one," Murphy told CBC News, adding that there's an urgent need to update the tax code now.

"It really sucks, but we have a really great team of people behind it that really want to see this through and that aren't going to stop until we see this change happen," she said.

During the pandemic, most in-person services moved to a virtual format, including support services for Canadians with disabilities.

Many of those services remained virtual after lockdowns ended, making it easier for many people with disabilities to access much-needed services.

But here's the catch: Currently, Canadians with disabilities do not have to pay taxes for services accessed in person — but if someone tries to access that same service virtually, they will need to pay taxes.

Murphy had gathered over 700 signatures last year even though she only needed 500 signatures to bring the petition to Parliament. Now she has to start again from scratch.

"People with disabilities are paying hundreds of dollars in tax every year on virtual support services, which is a really big problem. About 40 per cent of people living with disabilities in Canada are living below the poverty line."

She says avoiding taxes on virtual services could help a person save about $900 every year.

Finding a new sponsor

In addition to having the petition prematurely dissolved, Murphy also had to overcome the challenge of finding a new sponsor.

In the process of the election, Mike Morris, the MP sponsoring her petition, lost his seat in Kitchener-Centre.

Murphy turned to the leader of the federal Green Party, Elizabeth May, for help and she agreed to take the petition to Parliament this fall.

"I hope the new minister of finance, François-Philippe Champagne, will act quickly to correct something that really is a question of the tax code being outdated," May said.

"The idea that they don't get tax exemption on disability services unless you've gotten there in person is really counterintuitive and counterproductive and certainly prejudicial." she said.

The Green Party leader is asking Canadians to look for the petition online on the House of Commons website and sign it, even if they are not personally affected by the issue.

The new petition has over 200 signatures. Murphy will need at least 500 before the end of October deadline.

'Especially relevant' to Canadians in rural areas

Murphy says more and more virtual services are popping up across Canada every day.

"This is especially relevant to disabled Canadians who live in rural areas and don't have a day program nearby, or don't have more access to respite support services, or for people who don't have enough funding to access full-time, in-person support," she said.

"Every dollar goes a long way when you are living with the bare minimum amount of money."

Murphy says in-person services are usually drastically more expensive than virtual services.

"Day programs are thousands and thousands of dollars per year," she said. "We also don't see day programs on every corner of the street... they're not as common, which means that there are wait lists for a lot of day programs." 

She's hoping to drum up enough support before the deadline.

"I'm doing my best to really take extra efforts this time, including organizing a rally that will be happening in September to really push forward the the petition even more so than what was done last time," she said.