12 January 2004 External T.I. 2003-0046145 - MEDICAL EXPENSES DEVICES

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:

1. Whether the cost of a special needs car seat for a disabled child would qualify as a medical expense.

2. Would a stroller for a special needs child qualify as a medical expense.

Position:

1. The Act allows certain devices as medical expenses and this particular equipment/car seat is not specifically listed.

2. Where it is reasonable to consider the stroller as a wheelchair -yes

Reasons:

1. A car seat is not included in list of devices in Regulation 5700. In particular not covered by 5700(m); although it is designed exclusively for use by, or for, an individual who is disabled it is not to allow the individual access to different areas of a building or to assist the individual in gaining access to a vehicle or to place the individual's wheelchair in or on a vehicle.

2. Wheelchairs are specifically allowed as medical expenses under 118.2(2)(i)

				Lena Holloway, CA
XXXXXXXXXX  		(613) 957-2104
				2003-004614
January 12, 2004

Dear XXXXXXXXXX:

We are writing in response to your letter dated October 23, 2003 concerning whether the cost of car seats and strollers for children with special needs would qualify as medical expenses for purposes of the medical expense tax credit. Your letter referred us to the website XXXXXXXXXX for a description of these items for our consideration.

Written confirmation of the tax implications of a cost that a particular taxpayer will incur may only be given by this Directorate in the context of an application for an Advance Tax Ruling. However, we are prepared to provide the following general comments, which may be of assistance.

Our Comments

In our view, the cost of a stroller designed specifically for a child with special needs is only eligible for the medical expense tax credit if it can be considered a "wheelchair" for purposes of paragraph 118.2(2)(i) of the Income Tax Act (the "Act"). As the term "wheelchair" is not defined in the Act, reference must be made to its ordinary meaning. The Concise Oxford Dictionary - Tenth Edition describes a wheelchair as "a mobile wheeled chair for an invalid or disabled person," while Webster's Tenth New Collegiate Dictionary describes it as "a chair mounted on wheels esp. for the use of disabled persons." Based on these definitions, it is our view that the stroller designed for a child with special needs would qualify as a wheelchair where the stroller is purchased for a child who would otherwise require a wheelchair.

In order for the cost of a car seat designed specifically for children with special needs to qualify for the medical expense tax credit, it must be a medical expense under subsection 118.2(2) of the Act or be prescribed under section 5700 of the Income Tax Regulations (see paragraph 57 and the Appendix of IT-519R2). Since such a car seat is not included thereunder, it is our view that the cost of such a device would not qualify for the medical expense tax credit.

Please note that the role of the Canada Revenue Agency is to administer and enforce the Act as passed by Parliament. Tax policy and amendments to the Act are the responsibility of the Department of Finance. Should you wish to pursue your concern further, you may contact the Tax Policy Branch of the Department of Finance by writing to L'Esplanade Laurier, 140 O'Connor Street, Ottawa, ON, K1A 0L5.

We trust our comments will be of some assistance. Please contact us if you have any questions concerning our response.

Yours truly,

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