19 January 2004 External T.I. 2003-0041095 - MEDICAL EXPENSES-TRAVEL

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 the travel expenses in question qualify as medical expenses?

Position: No

Reasons: Not covered by the legislation.

XXXXXXXXXX 2003-004109
Shaun Harkin, CMA
January 19, 2004

Re: Technical Interpretation Request: Medical Expense

This is in reply to your letter of September 21, 2003 wherein you request our view on whether travel expenses you incurred relating to the medical needs of your son can be claimed as a deduction on your 2003 Income Tax Return.

Written confirmation of the tax consequences inherent in a particular transaction or series of transactions are given by this Directorate only where the transaction(s) are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R5. Notwithstanding the foregoing, we are prepared to provide the following comments.

Our Comments

Section 118.2 of the Income Tax Act (the "Act") provides rules for determining the amount that may be claimed, as a tax credit, in respect of medical expenses. Subsection 118.2(2) of the Act contains a list of expenditures that qualify as medical expenses. Those parts of subsection 118.2(2) that are relevant to your situation are discussed below.

An amount paid to a person engaged in the business of providing transportation services to transport an individual not less than 40 kilometres from the locality where the individual resides to a place where medical services are received may qualify as a medical expense under paragraph 118.2(2)(g) of the Act. Similarly, other travel expenses may qualify as medical expenses under paragraph 118.2(2)(h) of the Act if the individual travels not less than 80 kilometres from the locality where the individual dwells to a place where medical services are received. Transportation and travel expenses for an accompanying individual may also qualify under paragraphs 118.2(2)(g) and (h) of the Act if the patient has been certified by a medical practitioner as being incapable of travelling alone.

An individual or accompanying individual is entitled to claim transportation and travel expenses under paragraphs 118.2(2)(g) and (h) only if the following requirements are met:

(i) substantially equivalent medical services were not available in the individual's locality,

(ii) a reasonably direct travelling route was taken by the individual, and

(iii) the individual travelled to the particular place to obtain medical services for himself or herself and it is reasonable, having regard to the circumstances, for the individual to have travelled to that place for medical services.

While section 118.2 of the Act provides some relief in recognizing that travel expenses may be incurred in relation to necessary medical attention, such relief is only offered in limited circumstances. Unfortunately, the travel expenses described in your letter do not appear to meet the eligibility requirements set out in the section.

Please refer to Interpretation Bulletin IT-519R2 (Consolidated) for more information concerning the medical expense tax credit. This document can be obtained from our website at www.ccra.gc.ca.

We regret our response could not be more favourable.

Yours truly,

Wayne Antle, CGA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate

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