22 October 2008 External T.I. 2008-0289291E5 - Warmer climate as medical expense

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 the air fare to a warmer climate for a taxpayer and an accompanying individual qualify as medical expenses

Position: No

Reasons: Travel to a warmer climate is not considered to be for medical services under paragraphs 118.2(g) and 118.2(h)

XXXXXXXXXX 								2008-028929
									Rob Ferrari
October 22, 2008 

Dear XXXXXXXXXX :

Re: Travel Costs as a Medical Expense

We are writing in reply to your letter of July 23, 2008, in which you requested our views as to whether travel costs for yourself and a personal support worker ("PSW") are eligible medical expenses. It is our understanding that you paid the airfare for the PSW; however, you did not pay any remuneration or salary for her services. Your physician has completed the form T2201, Disability Tax Credit Certificate, and has advised you that your condition may be made more comfortable in a warmer climate during winter.

Although we have not been provided with sufficient information to make any definitive comments, we can provide you with general comments that may be of assistance. Where the particular transactions are completed, the inquiry should be addressed to the relevant Tax Services Office.

Our Comments:

The Canada Revenue Agency's ("CRA") views with respect to allowable medical expenses under subsection 118.2(2) of the Income Tax Act (the "Act") may be found in Interpretation Bulletin, IT-519R2 (Consolidated) ("IT-519R2") - Medical Expense and Disability Tax Credits and Attendant Care Expense. (Enclosed)

Paragraphs 118.2(2)(g) and 118.2(2)(h) of the Act provide conditions under which transportation and travel costs incurred to obtain medical services may be claimed as medical expenses by an individual. These provisions may also allow for the costs of one individual who accompanies the patient provided that a medical practitioner has certified that the patient is incapable of travelling without an attendant. Paragraphs 32-34 of IT-519R2 contain more details on this subject, which may be found on the CRA's website at: http://www.cra-arc.gc.ca/E/pub/tp/it519r2-consolid/it519r2-consolid-e.pdf.

It is the CRA's view that travel to a warmer climate during winter months is not made to obtain medical services as required by the Act. Based on the information provided, it is our view that the costs for your travel and the airfare paid on behalf of the PSW to travel south would not qualify as a medical expense under any of the provisions in subsection 118.2(2) of the Act.

We trust our comments will be of assistance to you.

Yours truly,

G. Moore
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch