Delmer
E
Taylor:—This
is
an
appeal
from
an
income
tax
assessment
for
the
year
1974
in
which
the
Minister
of
National
Revenue
disallowed
an
amount
of
$4,130
claimed
as
a
disability
deduction
by
the
taxpayer.
The
appellant
in
the
Notice
of
Appeal
referred
to
Clause
47A
of
the
1974
Income
Tax
Filing
Guide,
and
the
respondent
relied,
inter
alia,
on
paragraph
110(1)(e)
of
the
Income
Tax
Act,
SC
1970-71-72,
c
63
as
amended.
Facts
The
appellant
in
filing
his
income
tax
return
for
the
1974
taxation
year
Claimed
a
disability
deduction
for
his
handicapped
son
of
$4,130.
He
arrived
at
this
amount
by
claiming
a
retroactive
disability
deduction
of
$766
for
the
years
1970
to
1973
inclusive
($1,066
child
care
expenses,
less
the
$300
child
exemption
previously
claimed),
plus
$1,066
for
1974,
but
he
did
not
claim
the
$320
regular
dependants’
allowance
for
the
year
under
review.
He
further
claimed
medical
expenses
of
$1,106.57
which
included
transportation
costs
of
$1,026
for
his
handicapped
son.
On
reassessment,
the
respondent
disallowed
both
the
current
and
the
retroactive
disability
deductions,
but
increased
the
exemption
for
wholly
dependent
children
by
$320.
The
medical
expenses
were
allowed
as
claimed.
Contentions
The
appellant
asserted
that
since
the
Income
Tax
Act
made
provision
for
a
similar
disability
deduction
in
the
case
of
an
individual,
that
provision
should
be
extended
to
a
dependent
child.
The
respondent
asserted
that
the
Act
did
not
allow
such
an
extension
of
the
provisions
for
disability
deduction.
Evidence
The
facts
of
the
appeal
were
agreed
to
between
the
parties
and
no
specific
evidence
was
presented.
The
respondent
accepted
that
the
appellant
indeed
had
incurred
very
substantial
expenses
in
connection
with
the
support
and
care
of
his
son.
The
appellant
put
forward
for
the
Board’s
consideration
that
he
was
aware
that
the
provisions
in
the
Income
Tax
Act
during
the
year
1974
did
not
appear
to
allow
the
deduction
he
was
claiming,
but
that
his
efforts
in
bringing
the
matter
forward
had
been
instrumental
in
having
changes
made
in
the
Act
commencing
in
the
year
1976.
A
letter
in
support
of
this,
signed
by
the
Minister
of
Finance
of
the
Government
of
Canada,
was
submitted
to
the
Board
and
is
here
reproduced:
Minister
of
Finance
Ottawa,
Ontario,
K1A
0G5,
March
10,
1976.
Mr
Robert
L
Wenman,
MP,
House
of
Commons,
Ottawa,
Ontario.
K1A
0A6
Dear
Mr
Wenman:
This
is
to
acknowledge
your
letter
of
February
27
and
the
attached
correspondence
you
have
had
with
Mr
Harry
Green
of
Aldergrove,
British
Columbia,
concerning
his
view
that
the
parent
of
a
disabled
child
should
be
provided
with
a
deduction
in
respect
of
that
child
which
is
equivalent
to
the
deduction
for
a
taxpayer
or
his
spouse
who
is
confined
to
bed
or
wheelchair.
I
have
noted
Mr
Green’s
thoughtful
comments
on
the
need
for
tax
relief
of
this
sort.
You
may
wish
to
assure
him
that
the
correspondence
has
been
forwarded
to
the
appropriate
officials
of
the
department
for
careful
study
during
the
review
of
income
tax
matters
which
will
precede
introduction
of
the
upcoming
budget.
Thank
you
for
writing
to
me
on
this
important
matter.
Yours
sincerely,
(Signed)
Donald
S
Macdonald
Donald
S
Macdonald
Argument
Counsel
for
the
respondent
relied
upon
the
provisions
of
the
Income
Tax
Act
as
it
applied
in
the
year
in
question
in
that
no
deduction
could
be
claimed
within
the
meaning
of
paragraph
110(1)(e)
of
the
said
Act.
Findings
and
Decision
The
Board
can
add
little
to
the
import
of
the
letter
from
the
Minister
of
Finance
on
the
subject
matter.
It
is
beyond
the
jurisdiction
and
discretion
of
the
Board
to
consider
changes
in
the
Income
Tax
Act
as
having
retroactive
application
unless
directed
by
legislation
so
to
do.
There
was
no
income
tax
relief
available
to
the
taxpayer
applicable
to
his
particular
situation
in
the
year
1974.
The
appeal
is
dismissed.
Appeal
dismissed.
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