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 travel expenses to XXXXXXXXXX to obtain special contact lenses would qualify as a medical expense.
Position: Question of fact.
Reasons: Must meet the requirements under paragraph 118.2(2)(g) and 118.2(2)(h).
XXXXXXXXXX
2013-051012
Janet Lew
(613) 957-2135
March 13, 2014
Dear XXXXXXXXXX:
Re: Medical Expense Travel
This letter is in response to your October 28, 2013 email in which you requested our comments regarding whether you can claim your travel expenses to XXXXXXXXXX to obtain a specific kind of hard contact lenses as a medical expense.
You have explained that last year, you saw two optometrists in XXXXXXXXXX, and neither of them was able to provide you with suitable contact lenses. During a trip to XXXXXXXXXX, you saw an optometrist and obtained suitable contact lenses. You did not claim the travel expenses for that trip as medical expenses because it was unlikely that the expenses would qualify (based on your discussion with André Gallant, Senior Rulings Officer, on August 2, 2012).
You also told us that this year, you had eye surgery and the optometrist that was recommended by the surgeon was unable to prescribe suitable contact lenses. You plan to go to XXXXXXXXXX for the sole purpose of obtaining new contact lenses. You would like to know whether you can claim the travel expenses for this trip as a medical expense.
Our Comments
This technical interpretation provides general comments about the provisions of the Income Tax Act ("Act") and related legislation (where referenced). It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination. The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R5, "Advance Income Tax Rulings."
Medical Expenses Outside Canada
Medical expenses which are eligible for the medical expense tax credit ("METC") are limited to those described in subsection 118.2(2) of the Act. If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2), or if the conditions under which the expenditure would qualify are not met, the expenditure does not qualify for purposes of the METC, even though the expenditure may have been incurred for medical reasons.
Generally, eligible medical expenses are not restricted to those paid in Canada or for medical services provided in Canada unless specifically stated in the Act.
Transportation and Travel Expenses
Certain transportation and travel expenses may be claimed when a patient must travel to obtain medical services. Specifically, an amount paid to a person engaged in the business of providing transportation services, to transport a patient not less than 40 kilometres from the locality where the patient dwells to a place where medical services are normally provided, may qualify as a medical expense under paragraph 118.2(2)(g) of the Act. In addition, other reasonable travel expenses (for example, accommodation and meals) may qualify as a medical expense under paragraph 118.2(2)(h) of the Act if the patient travels to obtain medical services in a place that is not less than 80 kilometres from the locality where the patient dwells. An individual is entitled to claim transportation and other travel expenses only if the following requirements are met:
(i) substantially equivalent medical services are not available in the patient's locality;
(ii) the patient takes a reasonably direct travel route, having regard to the circumstances; and
(iii) the patient travels to that place to obtain medical services for himself or herself and it is reasonable, having regard to the circumstances, for the patient to travel to that place to obtain those services.
It is our view that the requirement in (iii) may be met even if medical services are available nearer to the patient's locality if, in the circumstances, it is reasonable for the patient to have travelled to the place where the medical services were obtained. For more information about claiming transportation and other travel expenses as medical expenses, please see Income Tax Folio S1-F1-C1, "Medical Expense Tax Credit" (available on our website at www.cra-arc.gc.ca).
Whether an amount qualifies as a medical expense is a question of fact that can only be determined after analyzing all the facts and circumstances. Such a review would usually only be undertaken by the Canada Revenue Agency in the course of an audit (if any), after a return has been filed by a taxpayer. However, based on the information provided, in our view, the requirements of paragraphs 118.2(2)(g) and (h) of the Act have not been met. In particular, it is not clear that substantially equivalent medical services are not available in your locality, or that it is reasonable to travel to XXXXXXXXXX to obtain the medical services.
We trust our comments will be of assistance.
Yours truly,
Pamela Burnley
Manager
Tax Credits and Ministerial Issues
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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