9 July 2013 External T.I. 2013-0483171E5 - 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.

Principal Issues: Can there be an exemption to the 40 km rule for travel under the Medical Expense tax credit?

Position: No

Reasons: A change in the legislation would be needed

XXXXXXXXXX
2013-048317
George A. Robertson, CMA

July 9, 2013

Dear XXXXXXXXXX:

Re: Travel under the Medical Expense Tax Credit

I am writing in response to your letter regarding an exemption to the distance limits on travel costs incurred to obtain medical services.

Written confirmations of the tax implications inherent in particular transactions are provided by this Directorate where the transactions are proposed and are the subject matter of an advance income tax ruling submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Rulings, dated May 17, 2002. This Information Circular and other Canada Revenue Agency publications can be accessed on the internet at www.cra-arc.gc.ca/formspubs/menu-e.html. Where a particular transaction has already been completed, a review of the relevant facts and circumstances surrounding the situation would be required. Such review would normally be conducted by the applicable Tax Services Office during the course of an income tax audit which, if undertaken, would be carried out after the particular taxpayer has prepared and filed its income tax return for the year. Notwithstanding the foregoing, we are prepared to provide the following comments that may be of assistance.

One of the criteria in paragraph 1.65 of the Income Tax Folio: Medical Expense Tax Credit is that the patient travels to a place that is at least 40 kilometres away from the locality where he or she dwells to receive medical services. The situation described by you is that the one way distance is 30 km, even though a total of up to 180 km [3 round trips of 60 km each] may be travelled for three treatments per day. Accordingly, the cost of travel for medical purposes is unlikely to qualify as an eligible expense for purposes of the medical expense tax credit. This folio is available at www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s1/f1/s1-f1-c1-eng.html

Any changes to the 40 km minimum distance traveled would require an amendment to the Income Tax Act. The CRA administers and enforces the Act as passed by Parliament. Changes to tax policy and amendments to the Act are the responsibility of the Department of Finance Canada.

We trust that these comments will be of assistance to you.

Yours truly, 

Sharmini Ratnasingham
for Director
Business & Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch