27 February 2004 External T.I. 2004-0055761E5 - Medical exp.-payments to private CEGEP

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.

Principal Issues:	Whether an amount paid in respect of a child to attend a
		private CEGEP qualifies as a medical expense.

Position: General comments provided.

Reasons: The determination is a question of fact.

Bob Naufal, CMA
XXXXXXXXXX (613) 957-2744
2004-005576
February 27, 2004

Dear XXXXXXXXXX:

Medical Expenses - Amounts Paid to a Private CEGEP

We are writing in response to your letter wherein you asked if amounts paid to enable your son, who has Attention Deficit Disorder ("ADD"), to attend a private CEGEP would qualify as medical expenses for purposes of the medical expense tax credit. In the letter, you state that a licensed psychologist recommends that your son attend a school with small classes and high levels of support. Accordingly, you enrolled and paid for your son to attend a private CEGEP. In your letter you refer to the Tax Court of Canada judgement of docket 2002-1584(IT)I, which was rendered under the Court's informal procedure.

Our comments herein are based on the understanding that a CEGEP is, in general terms, a post-secondary educational institution that offers courses to students who wish to continue their education at a university level as well as specialized career programs to students wishing to enter the work force upon graduation.

Our Comments

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.

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. The credit applies to qualifying medical expenses, in excess of defined limits, incurred in any 12-month period ending in the taxation year. Generally, an individual can claim medical expenses in respect of his or her child where the child was dependent on the individual, at any time in the year, for support.

Qualifying medical expenses include amounts paid for the care or the care and training at a school, institution or other place, of an individual, who has been certified in writing by an appropriately qualified person to be a person who, by reason of a physical or mental handicap, requires the equipment, facilities or personnel specifically provided by that place. An "appropriately qualified person" includes a medical practitioner such as a psychologist. If an individual suffers from a behavioural problem or a learning disability, and attends a school that has the equipment, facilities, and trained personnel to provide care and training of persons who have the same type of problem or disability, the amount paid for the individual to attend the school may qualify as a medical expense, notwithstanding that some part of the amount paid could be construed as tuition fees. The school need not limit its enrolment to persons who require specialized care and training. Moreover, whether an amount qualifies as a medical expense is a question of fact that can only be determined after analysing all the facts and circumstances.

It is our understanding that there are varying degrees of ADD, and that it is the more severe forms of the disorder that require the special facilities and personnel of an institution that deals specifically with such individuals. In this regard, the certification by the psychologist should provide details on the nature of your son's ADD and should explain why the equipment, facilities or trained professionals at the private CEGEP are required to provide him with the care and training that your son needs. We would accept the certification only if it was clear that the psychologist was fully informed as to the type of care provided by the private CEGEP and was able to specify the reasons that your son requires the equipment, facilities or personnel provided by that particular place. Lastly, the Canada Revenue Agency must be satisfied that the equipment, facilities or personnel provided by the private CEGEP meets this description. While a certification should be obtained prior to enrolment of your son in the private CEGEP, we are prepared to accept a certification made after enrolment if all the above-noted requirements are satisfied.

Finally, we have reviewed the Tax Court decision referred to in your letter. In that particular case, the Court concluded that the evidence given by a medical doctor demonstrated that the Appellant's sons were diagnosed with attention deficit disorder, and required the equipment, facilities or personnel provided by the private school they attended. Each case must be judged on its own particular facts, having regard to the nature and severity of the condition, the specific equipment, facilities, and personnel required by the individual, the specialized care and training provided by the particular institution, and the information in the certification provided by an appropriately qualified person.

We trust our comments will be of some assistance.

Yours truly,

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