Income Tax Severed Letters

Principal Issues: Whether Registered Social Service Workers in Ontario are authorized medical practitioners for purposes of the medical expense tax credit.

Position: Yes.

Reasons: As of August 15, 2000, the Social Work and Social Service Work Act, 1998, enables, permits, and empowers Social Service Workers in Ontario who are members of the Ontario College of Social Workers and Social Service Workers to perform medical services. As of December 30, 2017, Social Services Workers who are competent and authorized may perform the controlled act of psychotherapy under the Regulated Health Professions Act.

Principal Issues: Whether the excise tax levied under §4999 of the IRC (tax on an excess parachute payment) meets the conditions to be considered a “non-business-income tax” under subsection 126(7) of the Income Tax Act?

Position: No.

Reasons: The tax is not levied on net income and relief under the Canada-US Tax Treaty is not available.