24 April 2002 External T.I. 2002-0121825 - MEDIC EXPENSE;TRAVEL;SUBSTANTIALLY EQUIVALENT

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 CCRA.

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

Principal Issues: whether substantially equivalent medical services available

Position: no

Reasons: particular and unusual facts of this case

2002-012182

XXXXXXXXXX Denise Dalphy, LL.B.

(613) 941-1722
April 24, 2002

Dear XXXXXXXXXX:

Re: Medical Expenses

This is in reply to your correspondence of January 31, 2002 wherein you enquired about travel expenses that you have incurred while seeking necessary medical treatment.

Written confirmation of the consequences inherent in particular transactions are given by this directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R4. Where the particular transactions are partially completed or completed, the enquiry should be addressed to the relevant Tax Services Office. Notwithstanding the foregoing, we are providing the following comments.

The main issue in your income tax situation concerns whether or not you satisfy the requirements of subparagraph 118.2(2)(g)(iii) of the Income Tax Act (the "Act"), namely whether "substantially equivalent medical services are not available in [XXXXXXXXXX]".

You have described a unique situation where, notwithstanding that your income is low, you travel from XXXXXXXXXX for surgery. You have advised us that while the operations could be provided by a XXXXXXXXXX in XXXXXXXXXX, past events preclude you from being emotionally capable of doing this.

In our opinion, if you provide a letter from your family doctor or your XXXXXXXXXX that states that in his or her opinion, on the basis of your condition, including the past traumas that you have suffered, you are not able to obtain substantially equivalent medical services in XXXXXXXXXX, we would agree that the above requirement in the Act would be satisfied for either paragraph 118.2(2)(g) or (h), depending on the nature of the travel expenses. However, we have no information about the nature of the travel expenses that you incurred in travelling to XXXXXXXXXX. As such, we have not given any opinion on the deductibility of your travel expenses (such as whether the expenses that you claim are reasonable, for example). For additional comments, please see paragraphs 32, 33 and 34 of Interpretation Bulletin IT-519R2 (Consolidated) entitled, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction (copy attached).

The foregoing comments represent our general views with respect to the subject matter. As indicated in paragraph 22 of Information Circular 70-6R4, the above comments do not constitute an income tax ruling and accordingly are not binding on the Canada Customs and Revenue Agency. Our practice is to make this specific disclaimer in all instances in which we provide an opinion.

Yours truly,

Steve Tevlin
for Director
Business and Partnerships Division
Income Tax Rulings Directorate

APPENDIX I

(f) [ambulance fees] - for transportation by ambulance to or from a public or licensed private hospital for the patient;

(g) [transportation] - to a person engaged in the business of providing transportation services, to the extent that the payment is made for the transportation of

(i) the patient, and
(ii) one individual who accompanied the patient, where the patient was, and has been certified by a medical practitioner to be, incapable of travelling without the assistance of an attendant from the locality where the patient dwells to a place, not less than 40 kilometres from that locality, where medical services are normally provided, or from that place to that locality, if
(iii) substantially equivalent medical services are not available in that locality,
(iv) the route travelled by the patient is, having regard to the circumstances, a reasonably direct route, and
(v) the patient travels to that place to obtain medical services for himself or herself and it is reasonable, having regard to the circumstances, for the patient to travel to that place to obtain those services;

(h) [travel expenses] - for reasonable travel expenses (other than expenses described in paragraph (g)) incurred in respect of the patient and, where the patient was, and has been certified by a medical practitioner to be, incapable of travelling without the assistance of an attendant, in respect of one individual who accompanied the patient, to obtain medical services in a place that is not less than 80 kilometres from the locality where the patient dwells if the circumstances described in subparagraphs (g)(iii), (iv) and (v) apply;