14 March 1997 External T.I. 9704635 - ATTENDANT CARE

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

		970463
XXXXXXXXXX		M. Eisner

Attention: XXXXXXXXXX

March 14, 1997

Dear Sirs:

Re: Medical Expense Tax Credit - Homecare

This is in reply to your letter of January 14, 1997, concerning the above-noted subject. We also acknowledge our telephone conversation (M. Eisner/XXXXXXXXXX) on March 6, 1997.

In your letter, you have indicated that XXXXXXXXXX (the Association) is a non-profit organization. The Association provides homemaking and personal services (e.g., respite, personal care, palliative care, light housekeeping, meal preparation etc.) to individuals such as those who are elderly, frail, disabled, and terminally ill. The Association's employees who provide the services are qualified home support workers.

Your clients are assigned hours by the Ministry of Health of Ontario (Home Care) after they have been assessed. As the number of hours assigned to clients by the province has been reduced, clients are obtaining services directly from the Association in order to maintain the same level of services that they had prior to the reduction. The clients pay the Association for these services.

The concern is whether amounts paid to the Association for the services qualify for the medical expense tax credit.

Our Comments

The medical expense tax credit is discussed in Interpretation Bulletin IT-519R, which has been enclosed for your reference. At the outset, we wish to point out that it is not possible to provide you with definitive comments as a case-by-case review of a particular patient's circumstances is required to determine whether a payment made to the Association is an eligible medical expense. However, we are providing you with comments, which, we hope, will be of assistance to you.

In our view, payments made by an individual to the Association for the services outlined above may qualify for the medical expense tax credit under paragraph 118.2(2)(b), (b.1) or (c) of the Income Tax Act (the Act). These provisions set out the conditions under which amounts paid by an individual for "attendant care" and "one full-time attendant" could qualify as a medical expense. For an explanation, please see paragraphs 26 to 30 of the enclosed Interpretation Bulletin IT-519R.

In regard to the reference to "one full-time attendant" in paragraphs 118.2(2)(b) and (c) of the Act, it is the Department's position that several attendants could be utilized over a specified period of time to provide the care as long as the claim for income tax purposes included only one attendant for any portion of that period. The care can be provided by person(s) employed for that purpose in combination with other individuals, such as a spouse or other related person. As well, the phrase "full-time" does not place a minimum time requirement in attending a cared-for person by a particular attendant, but rather, it implies the constant care and attendance required by an individual by reason of that individual's illness or affliction.

We trust that you will find the foregoing satisfactory.

Yours truly,

John F. Oulton
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch